Chennai-based public sector lender Indian Overseas Bank has invited expressions of interest to take over as many as 46 bad loan accounts worth Rs 11,500 crore. The bank in a statement on Thursday said the move is part of its continuing effort to trim non-performing assets (NPAs).
Ajay Kumar Srivastava, the bank's chief executive officer, stated in the release that the bank is unwaveringly focused on value maximisation through robust recovery measures, including NPA sales, settlements among other means.
He also said the bank is looking at selling stressed loans in the MSME and educational portfolios to ARCs, aligning with the Bank’s strategy to enhance recovery outcomes and asset quality.
The bank’s gross NPAs have significantly declined from 11.69 percent as of March 2021, to 2.7 percent as of September 2024, while net NPAs have also come down from 3.58 percent in March 2021 to 0.47 percent in September 2024.
As part of its ongoing recovery strategy, the bank has invited expressions of interest from asset reconstruction companies (ARCs) to sell 46 accounts, amounting to Rs 11,500 crore. The sale will be conducted through an e-auction under the open auction method on a portfolio basis, the statement added.
These assets comprise accounts financed under a consortium arrangement, with some admitted under NCLT. Prospective buyers can bid on a portfolio basis, individual accounts, or groups of accounts.
Eligible ARCs and other transferees may submit their bids by January 18, and the e-auction is scheduled for January 30, the bank said.