The State-run Punjab National Bank (PNB) had put up three stressed accounts for sale. The three include accounts of Birsa Institute of Technology (Trust).
The PNB in an auction notice stated that in consonance with the regulatory guidelines the bank is going to place three accounts for sale to NBFCs/ARCs/FIs/ other banks etc on the terms and conditions laid down in the bank’s policy. The three accounts are Mangalam Oil Industries, Alliance Fibres Ltd and Birsa Institute of Technology (Trust). Alliance Fibres is based in Ahmedabad and they have an outstanding due of Rs 18.31 crore. It was a Non-govt company which was incorporated on 06 July 2006. The information was made by the bank to the public through an auction notice.
Mangalam Oil Industries is also based in Ahmedabad and they have outstanding dues of Rs 10.77 crore. It was a Non-Government company and it was incorporated on 09 October 1996. The company is majorly focused on Manufacturing (Foodstuffs). Birsa Institute of Technology (Trust) is based out of Raipur with an outstanding due of Rs 5.41 crore. BIT Sindri is one of the oldest and technological and engineering institute in India. It was founded in 1949.
Stressed Assets Targeted Resolution Action (SASTRA) Division will undertake the sale process. After the massive fraud caused by the jeweller’s duo Nirav Modi and Mehul Choksi, which was happened in early 2018 the SASTRA division is tasked to enhance bank’s recovery mechanism. The bids will be opened on Jan. 6, 2021, and the final date to receive interest from interested bidders is Dec. 29, 2020.
The Punjab National Bank stated that without assigning any reasons the bank may withdraw the account offered for sale. The bank will have the sole discretion on it. Punjab National Bank is the second-largest public sector bank in terms of its network and business. Recently the PNB cash withdrawal facility rules got changed. The total outstanding dues of the three stressed accounts are of nearly Rs 34.50 crore.
