Indian Overseas Bank

Indian Overseas Bank Central Office: P.B.No.3765, 763 Anna Salai, Chennai, 600 002 Recovery Department Date: 05th June 2018 SALE OF NPAs – LOT IV IN ...
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Indian Overseas Bank Central Office: P.B.No.3765, 763 Anna Salai, Chennai, 600 002 Recovery Department

Date: 05th June 2018 SALE OF NPAs – LOT IV IN Q1 FOR THE FINANCIAL YEAR 2018-19 IOB invites bids from SCs/ARCs/Banks/NBFCs/FIs for sale of Non Performing Account (list enclosed) during the financial year 2018-19. The time frame for the Sale and details of Data Rooms shall be as follows: S No 1. 2. 3. 4 5.

7.

Procedure Publication in the website and Mailing of PIMs to ARCs by Due diligence Period Data Rooms - IOB Regional Offices at Last date of submission of bid Opening of tenders followed by negotiation

Documentation formalities payment to be made by

Time frame 05.06.2018 06.06.2018 to 19.06.2018 Concerned Regional Office/Branch

22.06.2018 25.06.2018 Bank may, if so desired, permit the bidders to increase their offer and in which case the negotiation will take place during the course of the day after opening of covers and the final offer should be submitted on the same day. and Within five days of communication of acceptance by the Bank

If interested to participate in the sale process, our Recovery Department may be contacted along with a letter expressing interest and a Non-Disclosure Agreement duly stamped. The terms and conditions for sale are attached along with list of account put for sale.

GENERAL MANAGER (RECOVERY) Encl: 1.List of Account put for Sale 2. Terms and Conditions

INVITATION OF BIDS FROM SCs/ARCs/Banks/NBFCs/FIs FOR PURCHASE OF NPA ACCOUNT 2018-2019 IOB invites bids from SCs/ARCs/Banks/NBFCs/FIs for purchase of NPAs Account identified for sale as per list enclosed. The terms and conditions for sale are as under:

1.

The Account will be sold along with underlying securities on “as is where is” and “as is what is” basis without any recourse to the Bank.

2. The offers shall be given in Cash / Cash plus Security Receipts. 3. IOB will be assigning the outstanding as on the date of acceptance of the offer to the successful bidder.

4. Two weeks time is given to the SCs/ARCs/Banks/NBFCs/FIs for undertaking due diligence. However the entire exercise of due diligence is to be completed by the bidders within the time frame stipulated here under.

a. Due Diligence 1. The Bidders shall enter into a Non– Disclosure agreement with IOB before conducting due diligence. 2. The process of due diligence shall commence from 06.06.2018 and be completed by 19.06.2018. 3. All costs and expenses incurred to carry out the due diligence study or any other process in furtherance of their interest to purchase of NPA from IOB shall be borne by the bidders only. 4. While IOB will make available all the information to the intending buyers which have come on record, it assumes no responsibility either on the part of IOB or its officers, if found later that the information on record with IOB is not updated and the lack of it or inadequacy of it lead to realizing of lower value or facing litigations in the course of realisation of the value of the security. b. Submission of bids 1. The bidders shall submit bids both in Cash / Cash plus Security Receipts for the account.

2. IOB reserves its sole right to sell the asset either on Cash or Cash plus Security Receipts and the decision of the Bank shall be final. In case the offer is Cash plus Security Receipts then the following conditions apply:

a) The cash + SR component shall be as per RBI guidelines. The breakup of cash & SR portion for the account is furnished in the list enclosed.

b) The SRs of the Bank and that of the SCs/RCs/Banks/NBFCs/FIs shall be on paripassu basis.

c) The SR holders shall be entitled to an indicative yield of minimum 5% simple per annum.

d) The Management fee of the SR portfolio shall be as follows and shall be charged as per extant/existing RBI guidelines. Sl. No.

Period

Percentage per annum

1

1st year

1.50%

2

2nd & 3rd year

2.00%

3

4th year onwards

1.50%

e) In case of Upside sharing of any recovery after redemption of the SRs, the same shall be payable (SCs/ARCs/Banks/NBFCs/FIs).

in

the

ratio

of

80

(Bank):

20

f) The SR offer document and Trust Deed shall incorporate the above monetary terms only. If there is any other condition such as breakage cost, interest on expenses etc, which will have implication on the sharing pattern, the same should be specifically indicated in the offer letter. It shall be the responsibility of the bidder to ensure that the SR offer document and trust deed are strictly in accordance with the tender terms and terms of acceptance. In the event of any deviation in the SR offer document and Trust deed with that of the tender terms and terms of acceptance, then the tender terms and terms of acceptance only will prevail.

g) The management fee and expenses / cost etc shall be payable only out of the realisation made from the financial asset and the ARC/trust should not make any claim from the Bank for contributing towards management fee or towards expenses / cost or claim of any other nature on the ground that realisation is not yet made from the financial asset and no claim in this regard will be entertained by the Bank.

h) Recovery Incentive: There shall be an incentive for recovery as under; Sl. No.

Period

Percentage on the amount recovered

1

1st & 2nd Year

5.00%

2

3rd Year

4.00%

3

Thereafter

NIL

3. IOB reserves the right to withdraw the offer, amend, alter, modify or defer the proposal to sell at any time without assigning any reason.

4. IOB assumes no commitment for sale of its NPA to any bidder and IOB will

have sole discretion to reject the offer/bid without assigning any reason. It is the sole discretion of IOB to select the successful bidder.

5. The bids have to be submitted to the General Manager, Recovery Department Indian Overseas Bank, Central Office, 763 Anna Salai, Chennai-2 in a sealed cover mentioning at the cover “BID FOR LOT-IV Q1 FY2018-19: SALE TO ARC” to reach by or before 22.06.2018. d. Opening of bids 1. The bid covers will be opened on 25.06.2018 or any subsequent date after due intimation to all the bidders. The bids will be opened in the presence of the authorised representatives of the bidders, if present and IOB may, if so desires permit the bidders to increase their offer in person or through any other means of communication like telephone/fax/email etc. and in which case the negotiation will take place during the course of the day after opening of covers. The final offer should be submitted on the same day. 2. IOB will evaluate the bids and take a final view on them, keeping its requirements etc. and communicate its decision and the successful bidder shall immediately pay the amount within five days of communication of acceptance by the Bank. 3. Since the entire process has to be completed at the earliest, the co-operation of SCs/ARCs/Banks/NBFCs/FIs is solicited. RBI GUIDELINES APPLICABLE TO THE PURCHASER SHALL STRICTLY APPLY.

GENERAL MANAGER (RECOVERY) Encl: a/a

Indian Overseas Bank Recovery Department, Central Office, Chennai List of Account Identified for Sale to SCs/RCs/Banks/NBFCs/FIs During Q1 of FY 2018-19 (Amount in Crores) SL NO

1

ZONE/ REGION/ BRANCH Kolkata/ Kolkata I/ International Business Branch

BORROWER NAME

M/s Badrinarain Alloys and Steels Ltd

PRINCIPAL O/s

48.63

RESERVE PRICE FIXED Cash

4.7415

SR

26.8685

Total

31.61

DATA CENTRE International Business Branch 6, Royd Street,Kolkata 700016 Contact Person: Shri K T Srikrishnan Contact Details: 03322297706,22652487

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