Bank Of Baroda Puts ₹2,776 Crore Stressed Loans On The Block, Including 9 Fraud Accounts

Bank of Baroda has offered a portfolio of stressed loans amounting to ₹2,776 crore to asset reconstruction companies (ARCs) and non-banking financial companies (NBFCs).

The pool comprises 41 accounts, of which nine have been tagged as fraud, including names such as Ushdev International, Nirmal Lifestyle, Abhijeet Projects, and Pixion Media.

The move is part of the state-owned lender’s efforts to clean up its books and offload accounts that have not been recovering for a while.

A Spread Across Sectors

The 41 accounts cover a wide mix of industries, including power, infrastructure, real estate, textiles, automobiles, and media. The book dues mentioned in the offer are as of 31 March 2026.

The largest single exposure in the pool is Shirpur Power, where the outstanding dues are ₹526.68 crore. That is followed by Ushdev International with ₹280.28 crore, Pixion Media with ₹154.68 crore, Abhijeet Projects with ₹150.18 crore and Nirmal Lifestyle with ₹145.77 crore.

The top ten accounts alone account for over ₹1,900 crore of the total portfolio. Apart from the five mentioned above, the list also includes SE TransStadia (₹127.09 crore), Seya Industries (₹126.03 crore), Pearl Vision (₹117.79 crore), Ranchi Expressways (₹110.34 crore), and Century Communication (₹106.19 crore).

Fraud-Tagged Accounts

The full list of accounts tagged as fraud includes Torque Automotive, Pearl Vision, Century Communication, Shri Lal Mahal, and SRS Modern Sales, alongside the names mentioned earlier.

The bank has clarified that any transfer of these accounts will not affect any ongoing criminal investigations being carried out by the CBI, police, or other law enforcement agencies.

How The Sale Will Work

The sale will be carried out strictly on a cash basis. The assets will move to the buyer on an "as is where is, without recourse" basis, which essentially means that all credit, operational, legal, and other risks shift entirely to the buyer once the deal is sealed.

There is also a clear filter on who can participate. Bidders that have any connection with the promoters or guarantors of the stressed accounts will be disqualified from the process.

To make the evaluation cleaner, two sets of accounts have been grouped as pool accounts. The first is the Ishwar Oil group, and the second is a cluster of three textile firms, namely Swift Fabrics, Uttam Finetex, and Nangalia Fabrics.

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The Bidding Process

Bank of Baroda has chosen to go with the Swiss Challenge method to finalise the winning bid. Under this process, the highest initial offer becomes the base price. Other bidders looking to challenge that offer have to come in with at least a 5% mark-up over the base price to qualify as a challenger.

Source:

The Economic Times