SBI has sold the non-performing loan account of KSK Mahanadi Power Company to Aditya Birla ARC for Rs 1,622 crore, accepting a haircut of almost 58 per cent against the total outstanding.

KSK Mahanadi Power Company had a total loan outstanding of Rs 3,815.04 crore towards SBI as of April.

“SBI initiated the open offer e-auction towards sale of fund based exposure of KSK Mahanadi Power Company on 100 per cent cash basis on April 20 for a reserve price of Rs 1,544.08 crore,” SBI said in a regulatory filing on Thursday.

The state-owned lender had received 15 expressions of interest, while only one bid was received from Aditya Birla ARC for Rs 1,544.08 crore in an auction at end-May.

In a Swiss challenge auction process in June, the lender said it received no competing bids and based on subsequent discussions, Aditya Birla ARC improved the offer to Rs 1,622 crore.

SBI said the sale concluded on August 12 after getting an approval from competent internal authorities.

The lender had earlier put the e-auction of KSK Mahanadi on hold in December 2021 citing administrative reasons.

At that time, the total outstanding against the company stood over Rs 4,100 crore.

Established in June 2009, KSK Mahanadi Power was undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 for more than two years.