State-owned Punjab National Bank PNB has put up for sale of the account of the loss-making Burnpur Cement of West Bengal and has invited bids from Asset Reconstruction Companies ARCs to recover loan outstanding of over 50 crore.
PNB said the company owes Rs 50.18 crore as a loan after Placing the Non-Performing Account NPA on sale. The reserve price for the sale of the account to ARCs allowed transferees is estimated to be Rs 20 crore.
PNB said it will bring copies of all documents to the one place for verification of the prospective buyer to expedite the process of due diligence.
The bank may withdraw the account offered for sale at any time, without assigning any reasons, it added.
The bidding process will be conducted on July 16, 2022, on PNB's e-auction portal.
Burnpur Cement has accumulated losses of over Rs 58.97 crore, resulting in an erosion of the net worth of the company. The net worth of the company is negative at - 282.03 crore.