Indian Bank Plans to Offload INR 610 Crore in Bad Loans
- 12th Dec 2023
- 1321
- 0
Never miss any update
Join our WhatsApp Channel
Indian Bank's Asset Clean-Up Initiative
In an effort to streamline its financial portfolio, the state-run Indian Bank has announced the sale of bad loans amounting to ₹610 crore. This move is part of the bank's strategy to clean up its books by the end of the current financial year. The sale includes debts from key sectors like real estate and international trade.
Details of the Non-Performing Assets
The loans on sale involve exposures to several prominent businesses. These include a ₹351 crore loan to Ashvi Developers, with a reserve price set at ₹97 crore. Debts of LMJ International are on the block for ₹162 crore, with a reserve price of ₹12 crore. Additionally, ACCIL Corporation's ₹88 crore loan is up for sale, with a reserve price of ₹30 crore. Indian Bank is optimistic about recovering at least a quarter of these bad loans' value.
Open Bidding Process for Recovery
Interested parties have until December 14 to express their interest in these assets. The bank plans to conduct an e-bidding event on December 27, as outlined in the bid document. In a flexible approach to the sale, Indian Bank allows investors to submit bids for individual accounts, adhering to an open bidding process where offers are invited above the set reserve prices.
Sectoral Impact and Recovery Prospects
This divestiture is significant in the context of Indian Bank’s broader financial management strategy. It reflects a growing trend among banks to offload non-performing assets, thereby strengthening their balance sheets. The move is particularly relevant given the current economic climate, where recovery and stabilization are key objectives for financial institutions.
Comments
No comments yet.
Add Your Comment
Thank you, for commenting !!
Your comment is under moderation...
Keep reading blogs