PNB Puts ₹873 Crore Stressed Assets on Sale, Invites Bids from ARCs

New Delhi: Punjab National Bank (PNB) has launched a major clean-up exercise by inviting Asset Reconstruction Companies (ARCs) and other permitted financial entities to acquire a portfolio of stressed loan accounts with a total outstanding exposure of ₹873.24 crore. The invitation, issued by PNB’s Stressed Asset Management Division (SAMD), marks another strategic step by the public sector lender to strengthen its balance sheet and accelerate recovery from non-performing assets (NPAs).

According to the official notice, the proposed transfer of stressed loans will be carried out strictly in accordance with RBI regulations and the bank’s internal policies, subject to approval by PNB’s Head Office Committee. The sale will take place on a 100% cash basis and on an “as is where is” and “without recourse” basis, meaning that all credit, legal and operational risks linked to the accounts will be fully transferred to the buyer.

The stressed portfolio includes several high-value corporate accounts. The largest exposure is to Gammon India Limited with outstanding dues of ₹513.83 crore, followed by Simbhaoli Sugars Limited at ₹226.49 crore. Other accounts on offer include Ranchi Expressways Limited (₹93.81 crore), Shree Basaveshwar Sugars Limited (₹23.69 crore), B.D.H. Enterprises India (₹11.14 crore) and Bros Entertainment Shoppe Private Limited (₹4.28 crore). Together, these accounts form a significant recovery opportunity for distressed asset investors.

PNB has laid out a structured bidding process. Interested buyers must submit their Expression of Interest and execute a Non-Disclosure Agreement by January 12, 2026. Due diligence for most accounts must be completed by January 30, 2026, while the larger Gammon India account has a later deadline of February 7, 2026. Binding financial bids are scheduled for February 7 for most accounts and February 17 for the Gammon India exposure.

The final selection will follow the Swiss Challenge method, under which the highest initial offer becomes the base bid. PNB will then invite counter-bids through a public auction process. If any counter-bid exceeds the base bid by the required margin of 5% to 15%, the original bidder will have the right to match the higher offer. This transparent mechanism ensures maximum value recovery for the bank.

This large-scale stressed asset sale underscores PNB’s ongoing focus on cleaning up its loan book, improving asset quality and freeing up capital for fresh lending. For ARCs, NBFCs and institutional investors, the transaction presents a substantial opportunity to acquire large corporate exposures in India’s growing stressed asset market.