The bank is also selling a bunch of residential properties, the majority of which are in Bengaluru and a few in South Mumbai
Bank of Baroda (BoB) has put on sale 11 office premises it owns in Kohinoor Square in Dadar project in lieu of its Rs 200 crore loan to the project. The reserve price for each of the office space is over Rs four crore. The bank has also advertised sale of a bunch of residential properties, majority of which are in upmarket localities in Bengaluru and a few properties in South Mumbai. Some of these are bank's own properties which will be sold and leased back.|
The Kohinoor property of the bank was the erstwhile Kohinoor mills which was bought by the Kohinoor group promoted by Umesh, son of former chief minister of the state Manohar Joshi, Maharashtra Navnirman Sena chief Raj Thackeray and his business partner Rajan Shirodkar for Rs 421 crore. Later in 2009, Raj Thackeray got out of the partnership. Kohinoor CTNL Infrastructure Private Ltd, a subsidiary of Kohinoor group, began construction of the premium residential and commercial establishment in 2009 but got mired in political hiccups and financial problems.
A detailed questionnaire sent to the bank remained unanswered despite several reminders.
OFFLOADING ASSETS
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- The bank is also selling a bunch of residential properties, the majority of which are in Bengaluru and a few in South Mumbai
- Some of these are bank's own properties which will be sold and leased back
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IL&FS is the other financial entity which owns three lakh square feet in the property. IL&FS investment into the project when Raj Thackeray was a shareholder is under the scanner of the Enforcement Directorate. Edelweiss Asset Reconstruction Company, which bought out the loans of banks, is driving the construction of the project. It recently handed over 1,000 parking lots the BrihanMumbai Municipal Corporation.
In 2017, Edelweiss ARC approached the National Company Law Tribunal (NCLT) after Kohinoor CTNL defaulted on loan to banks. Bank of Baroda, State Bank of India and the erstwhile State Bank of Travancore had lent Rs 800 crore to the project which Edelweiss ARC bought out without any discount by paying the full money to the banks.
Bank of Baroda has been aggressively trying to sell its non-core assets to improve profitability. After amalgamating Dena Bank into itself, BoB has put the Dena Bank headquarters on sale for over Rs 530 crore. The employee unions have strongly protested the move of the bank to sell this property.
About 64 properties, majority residential, are put on auctions. The bank said in the advertisement for sale that it is not responsible for any third-party claims and that all the fixtures and the furniture in the premises will not form part of the sale.
The bank continues to be saddled with bad loans. Its gross non-performing assets (NPAs) rose 24.76% to Rs 69713.95 crore at the end of the first quarter ended June 30, 2019. The bank saw slippages to the tune of Rs 5,583 crore in the first quarter. The largest account that slipped in the quarter was an IL&FS road asset of over Rs 400 crore. The bank has a watchlist of Rs 16,440 crore as of June 30, 2019, of which Rs 10,700 were from Bank of Baroda standalone entity, Rs 2,884 from erstwhile Dena Bank and Rs 2,856 crore from Vijaya Bank. The bank is also planning rationalisation of close to 800 branches post the amalgamation of Dena Bank and Vijaya Bank.
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IL&FS is the other financial entity which owns three lakh square feet in the property. IL&FS investment into the project when Raj Thackeray was a shareholder is under the scanner of the Enforcement Directorate. Edelweiss Asset Reconstruction Company, which bought out the loans of banks, is driving the construction of the project. It recently handed over 1,000 parking lots the BrihanMumbai Municipal Corporation.
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