Several public sector banks, including State Bank of India, is planning to sell NPAs worth around Rs 2000 crore to asset reconstruction companies (ARCs). According to banking circles, while SBI has a small portfolion of bad loans, UCO Bank has about Rs 1000 crore worth of these assets. State Bank of Hyderabad has already called for tenders for its Rs 700 crore worth of bad loans. The gross NPAs of banks for calendar year 2013 stood at Rs 2,43,210 crore, up 35% on a y-o-y basis The RBI had in February clarified that if banks sell assets to ARCs below the net book value, losses incurred due to this could be amortised over two years. The offer is valid until March 2015. Banks sold Rs 50,000 crore of outstanding bad loans to ARCs in 2013-14, compared with Rs 12,500 crore a year ago.
