M&A
Bank of Baroda to divest 41 stressed loan acs worth Rs.2,700-Cr
Bank of Baroda has invited bids from asset reconstruction companies and non-banking financial companies (NBFCs) for the sale of a stressed loan portfolio valued at Rs.2,776-Cr.The sale process involves 41 distinct accounts, including nine accounts previously classified as fraud. The transaction is being structured as an all-cash deal on an "as is where is, without recourse" basis based on a Swiss Challenge method.The portfolio comprises assets across sectors, including infrastructure, power, real estate, media, textiles, and automobiles. Major exposures within the portfolio include Shirpur Power, Ushdev International, Pixion Media, Abhijeet Projects, and Nirmal Lifestyle. The ten largest accounts collectively represent over Rs.1,900-Cr of the total portfolio value.The bank has mandated that any bidders with affiliations to the promoters or guarantors of the underlying stressed accounts will be disqualified from the bidding process.
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