In a notice by the State Bank of India (SBI), the country's largest lender is all set to auction off it's 12 non-performing assents (NPAs) on June 25, 2018 in bid to recover Rs1,325 crore.

The NPAs on the e-auction list include Ankit Metal & Power Ltd (Rs 690.08 crore), Modern Steels Ltd (Rs 122.61 crore), Good Health Agrotech Pvt Ltd (Rs 109.14 crore), Amit Cottons Pvt Ltd (Rs 84.70 crore), Ind-Swift Ltd (Rs 80.49 crore), Nikhil Refineries (Rs 52.85 crore), Bhaskar Shrachi Alloys (Rs 51.48 crore), Sri Ganesh Sponge Iron Pvt Ltd (Rs 38.96 crore), Asmita Papers (Rs 37.23 crore), Forel Labs (Rs 22.86 crore), Karthik Agro Industries (Rs 20.82 crore) and Abhinandan Interexim (Rs 14.15 crore).

Those keen on bidding has to submit an expression of interest and execute a non-disclosure agreement with SBI.

The lender's loss of Rs7,718 declared in the end of fourth quarter of March were a record high of which total NPAs were Rs1,10855 crores or 5.73% of net loans. Gross NPAs stood at Rs2.23 lakh crore by March 31,2018.

According to a SBI official the bank is hoping to recover Rs40,000 crore of its stressed assets in the current fiscal. "Our expectation is that we will be making a recovery of more than Rs 40,000 crore in the current financial year. We expect to get around Rs 25,000-30,000 crore from IBC (Insolvency and Bankruptcy Code) route and the balance would be recovered from other sources like sale to ARCs and one time settlement," lender's Deputy Managing Director (Stressed Assets Resolution Group) Pallav Mohapatra was quoted by media agencies.

As per the revised guidelines by the Reserve Bank, there are three major plan of action with regards to stressed assets - early identification of said assets, resolution plans to be set in place as per timelines and penalty to be paid banks for overshooting these timelines.