Bankers are getting "impatient" as cases under the Insolvency and Bankruptcy Code (IBC) are moving slower than expected.
As a part of their clean-up act, public sector banks are looking to get rid of their bad loans going into financial year 2019-20.
As per a report in Business Standard, PSBs are planning to off-load loans worth over Rs 96,000 crore (as per industry estimates), including those under bankruptcy proceedings.
Bankers, according to the report, are getting "impatient" as cases under the Insolvency and Bankruptcy Code (IBC) are moving slower than expected.
"Earlier we were expecting realisation of around Rs 3,200 crore through cases stuck at National Company Law Tribunal (NCLT)," Ashok Kr Pradhan, managing director and chief executive officer, United Bank of India, told the paper.
The bank will sell loans, identified by the bank and approved by the board, worth Rs 3,000 crore through auction.
He said that chances of recovering anything over Rs 1,500 looked bleak this financial year.
Another executive from IDBI Bank told the paper that while the banks were hoping to resolve cases during the first quarter, not many cases have been resolved even till the last quarter of the current FY.
"Banks have no choice but to shore up their balance sheets," he said.
The bank plans to sell loans worth Rs 29,000 crore (Alok Industries) and Rs 3,900 crore (Jayaswal Neco).
Other banks that plan to sell their loans include Dena Bank, Punjab National Bank, Bank of India and Central Bank of India.
Accounts that could go under the hammer include Essar Steel (SBI, Central Bank; Rs 48,000 crore), Alok Industries (IDBI Bank; Rs 29,000), ABG Shipyard (Dena Bank; Rs 6,900 crore), Jayaswal Neco (IDBI bank; Rs 3,900 crore), Visa Steel (Bank of India; Rs 3,600 crore), Dighi Port (Bank of India, Rs 2,700 crore) and Moser Baer (PNB; Rs 2,300 crore).
Syndicate Bank is waiting for the NCLT proceedings to finalise, the report said.
Last week, State Bank of India (SBI) had announced to e-auction it's loan to Essar Steel worth Rs 15,431 crore. The bank has quoted a reserve price of Rs 9,587.64 crore. The auction will take place on January 30.
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