Andhra Bank, SBI put Rs 5,000 crore soured loans on the block

MUMBAI: Andhra Bank and State Bank of India have jointly put on the block bad loans worth over Rs 5,000 crore as they look to avoid steep provisioning if these loans don’t get resolved by March

Andhra Bank has put on the block the 112 accounts with outstanding loans of Rs 3,251, while State Bank of India has done the same for 15 accounts amounting to Rs 1,833 crore.


Visa Power and Visa Steel are among the two big-ticket accounts that are on block in the list of non-performing loans released by the state-run Andhra Bank. In case of State Bank of India, the country’s largest lender, the list of big-ticket loan takers includes BRG Iron & Steel where it has invited bids for Rs 759 crore worth of loans. The list of 15 accounts on the block by SBI also includes a pool of education amounting to Rs 382 crore given to over 20,000 students.

A week ago, Bank of Baroda and Union Bank of India had announced sale of bad loans which included companies such as Essar Steel and Bhushan Steel, which are facing bankruptcy proceedings from lenders.

SBI has set a reserve price of Rs 134.4 crore for BRG Iron & Steel, and has indicated that they would prefer 50 per cent of the consideration amount in the form of cash.

Andhra Bank has an exposure of Rs 128.6 crore in Visa Steel and set Rs 55 crore as a cut-off if the offer is in full cash. For Visa Power, the bank has an exposure of Rs 91.8 crore and has set a cut off of Rs 58 crore. In some of cases, Andhra Bank has set reserve price higher than the exposure it has in the bank.