PNB Invites Bids for ₹2,745 Crore Stressed Asset Portfolio via Swiss Challenge

NEW DELHI — December 24, 2025 — Punjab National Bank (PNB), through its Stressed Asset Management Division (SAMD), has announced a significant auction of non-performing assets (NPAs) totaling over ₹2,745 crore. The bank intends to transfer the debt of 20 major corporate entities to Asset Reconstruction Companies (ARCs) and other permitted transferees on a 100% cash basis. This strategic cleanup is being conducted under the Swiss Challenge Method, ensuring maximum value realization through a competitive bidding process.

The portfolio features high-value exposures across multiple sectors, including infrastructure, power, and manufacturing. Key accounts include Millennium City Expressways Pvt Ltd (₹478.60 crore), Aban Offshore Ltd (₹390.65 crore), Gupta Power Infrastructure Limited (₹314.01 crore), and Moser Baer Solar Ltd (₹236.15 crore). Other notable stressed loans being auctioned belong to Corporate Power Limited (₹195.07 crore), Vibha Agrotech Ltd (₹179.75 crore), and Vijay Nirman Company Pvt Ltd (₹149.78 crore).

Execution Framework and Regulatory Guidelines

The transfer process is governed by a strict "as-is-where-is" and "without recourse" policy, ensuring that all credit, operational, and legal risks are shifted entirely to the acquirer.

Bidding Mechanism: Under the Swiss Challenge Method, the highest initial offer received becomes the "Base Bid." The bank will then invite counter-bids via public announcement. The original bidder retains the right to match the highest counter-bid if it exceeds a specified markup of 5% to 15%.
Compliance Requirements: In line with Section 29-A of the Insolvency and Bankruptcy Code (IBC) 2016, bidders must warrant that they have no direct or indirect links to the original promoters or guarantors. The transfer is a commercial decision and will not interfere with any ongoing criminal investigations by agencies like the CBI or Police.
Operational Terms: The bank reserves exclusive rights to any claims from ECGC, CGTMSE, or insurance subsidies. Furthermore, if a borrower offers a One-Time Settlement (OTS) before the financial bid is submitted, the bank may withdraw that specific account from the auction.

Mandatory Timeline for ARCs

PNB has defined a non-extendable schedule for interested parties to ensure a swift resolution.

Initial Documentation: Submission of Expression of Interest (EOI) and execution of a Non-Disclosure Agreement (NDA) must be completed by January 3, 2026 (05:00 PM).
Due Diligence Phase: Potential buyers are allotted a window until January 21, 2026, for standard accounts, while larger accounts (Aban Offshore, Millennium City, and Gupta Power) have until January 31, 2026, to complete comprehensive audits.
Binding Bid Submission: Final binding bids for the largest exposures are due by February 9, 2026, which will then be opened by a designated committee at the PNB Head Office in Dwarka, New Delhi.