To All Asset Reconstruction Companies/Banks

Notification for Acquisition of Non Performing Assets from Allahabad Bank

The Bank is selling some non-performing assets either on cash or security receipt basis on the terms and conditions as detailed below.

Accordingly, the interested Asset Reconstruction Companies / Banks who are permitted by Reserve Bank of India to buy such assets are invited to submit their bid to the undersigned in a sealed cover.

The following is the schedule of events:-

1. Due Diligence to be completed by 5th December, 2009

2. Last Date for submission of the bid – 10th December, 2009, 12 noon

3. Opening of Bid – 10th December, 2009, 2 PM

4. Interse Bidding –10th December, 2009, 4.30 PM

5. Further bilateral negotiations, if any, will be done at the discretion of the Bank

6. Assignment of debt in favour of the purchaser-latest by 30th December 2009.

Terms and conditions:

1. The interested purchaser should submit documentary evidences (RBI approval, registration etc.) in support of their eligibility to buy such assets from the bank.

2. A ‘Non-Disclosure Agreement’ (NDA) is to be executed and submitted to Ms.S.D.Chaudhuri, Chief Manager, Allahabad Bank, Head Office, No.2, N.S. Road, Kolkata-700 001 before initiating due diligence (scanned copies sent by email are acceptable, however hard copy should also be forwarded). Format of the NDA is enclosed.

3. A non refundable deposit of Rs. 10,000 ( through Bank draft in favour of Allahabad Bank payable at Kolkata) must be submitted along with the NDA. All participating entities are also informed that all expenses relating to photocopying etc, will be borne by them in full.

4. On receipt of the Non- Disclosure Agreement, to be executed by all parties on non-judicial stamp paper of Rs.100/-,along with the Draft of Rs. 10,000, the parties will be provided the Preliminary Information Memorandums (PIMs) of the assets on sale.

5. There are in all 116 (One hundred & sixteen) assets, out of which 4 (four) assets, are offered on single asset basis, and the rest of the assets are divided into 9 (nine) baskets. The details of the assets and their Preliminary Information Memorandums (PIM) will be made available on receipt of the NDA. The parties are urged to furnish their email addresses for correspondence along with the NDAs. Further information on the assets for sale will be available at the data rooms, the details of which are given below.

6. There are 6 (six) Data Rooms, stationed at Kolkata (2nos), Mumbai, Lucknow, Ranchi and New Delhi. The addresses, contact persons and contact nos are given below:

7. All bids are to be addressed to the General Manager ( Recovery), Allahabad Bank Head Office, 2, NS Road, Kolkata- 700001. All bids submitted by hand should be submitted to either of Shailesh Kumar, Chief Manager (Recovery), (99030 24104), S.D. Chaudhuri (Chief Manager-Recovery- 98303 12756), or Abdul Bari (Chief Manager-Recovery- 98310 11189)

8. Offers may be submitted by the ARCs separately for each single account both on cash and Security Receipt (SR) basis, but for baskets, bids will be accepted only in cash. The participating Banks should submit their offer only on cash basis.

9. The SR bids, acceptable ONLY for single assets will have the following structure:

   1. Minimum of 15% of the SR bid amount will be payable in cash;

   2. The SRs will carry a coupon rate of 8% p.a.

   3. Management fee will be capped at 1.5% p.a;

   4. All investments in SRs will have pari passu redemption.

   5. Any excess recovery after providing for redemption of the Security Receipt Holders as per agreed terms shall be shared by the Bank and the ARC on 80:20 basis

10. Bank reserves the right to decide the mode of sale for each asset whether on cash basis or on security receipt basis.

11. The NPA sale from the Bank is subject to the Terms & Conditions as detailed above. Bank reserves the right to vary/ modify these at its sole discretion. Participating entities are urged to read these thoroughly before deciding to participate.

12. All sales shall be ‘without recourse’ so that in the event of non-realization of amount out of secured assets, the bank is not liable to refund anything in part or full.

13. The tender will be opened in the presence of the participants in the process. After opening of the tender, General Manager (RR) will carry out interse bidding with the interested parties participating in the bid for improvement of the offer received through bid. Selection of the parties will be at the discretion of the Bank.

14. Further bilateral negotiations, if any, will be done at the discretion of the Bank..

15. The Bank reserves the right to reject and/ or cancel or defer the sale of the non-performing assets without assigning any reason.

16. All the conditions of sale are subject to the guidelines of IBA, RBI and other statutory bodies.

For further queries, interested companies/banks may contact S.D. Chaudhuri (Chief Manager-Recovery- 98303 12756) at Recovery Department, Head Office, 2, N S Road, Kolkata – 700 001.
Emails for correspondence are:
ho.recovery@allahabadbank.in and sudeepa.dc@allahabadbank.in

Dated: 26.10.2009

General Manager (RR)

Click here for draft Assignmenmt Agreement
Click here for Power of Attorney format
Click here for Non Disclosure Agreement
Click here for General Terms & Conditions
Click here for addendum