Bank of Baroda News: Open box of bad loans worth Rs 2,776 crore, biggest burden of these companies, many accounts declared fraud…

Business Desk- Bank of Baroda News: Taking an important step towards cleaning its balance sheet, Bank of Baroda has started the process of selling stressed loans (bad loans) worth Rs 2,776 crore. The bank has invited bids from Asset Reconstruction Companies (ARCs) and NBFCs for a portfolio of 41 accounts.

An important point of discussion is that this portfolio includes many such accounts which have already been declared fraudulent. In the banking sector, this move is being seen as a big ‘cleanup operation’. Many companies from power, real estate, infrastructure, media and textile sectors are included in this list, due to which there has been increased market activity.

Shirpur Power: Most outstanding

In this entire portfolio, Shirpur Power has the highest outstanding. The company owes approximately Rs 526.68 crore to the bank. The fact that this company in the power sector is at the top of the list. This is a clear indication that many companies in the energy sector are still facing financial crisis. This special account is being considered as the biggest challenge before the bank.

Ushdev International: A big default

The second largest stressed account is that of Ushdev International, which reportedly has outstanding of Rs 280.28 crore. This company has been in the news earlier also due to debt crisis and financial irregularities. The bank has put this account in the ‘fraud’ category, which has further increased the seriousness of the situation.

Pixian Media: Growing Concerns

Pixian Media, a company working in the media sector, has outstanding of Rs 154.68 crore. Concerns have increased in the banking system due to the name of this company being included in the list of accounts declared fraudulent. The case also points to the growing debt crisis affecting companies involved in the media and digital business sectors.

Abhijeet Projects: Dues of more than Rs 150 crore

Infrastructure sector company Abhijeet Projects has outstanding of Rs 150.18 crore. In the last few years, many companies in the infrastructure sector have been badly affected by lack of funding and cash-flow crisis. As a result, the pressure of NPAs (Non-Performing Assets) has increased on many public and private sector banks.

Real estate crisis of Nirmal Lifestyle

The name of real estate company Nirmal Lifestyle is also included in this list. The company owes Rs 145.77 crore to the bank. Due to slow sales and lack of funding in the real estate sector, many companies have fallen into trouble, the effect of which is now clearly visible on the balance sheets of banks.

Huge dues on these companies also

In this list, the top 10 accounts include outstanding of Rs 127.09 crore on SE Transstadia, Rs 126.03 crore on Seya Industries, Rs 117.79 crore on Pearl Vision, Rs 110.34 crore on Ranchi Expressway and Rs 106.19 crore on Century Communication. The total outstanding of these top 10 accounts alone is more than Rs 1,900 crore, which is a major part of the bank’s entire portfolio.

Many accounts declared fraudulent

The accounts which the bank has declared as fraudulent include companies like Torque Automotive, Pearl Vision, Century Communication, Shri Lal Mahal and SRS Modern Sales. However, the bank has made it clear that the sale of these accounts will not have any impact on the ongoing investigation being conducted by the CBI, police or other regulatory agencies.