New Delhi: Indian Overseas Bank (IOB) has invited Expressions of Interest (EOIs) from Asset Reconstruction Companies (ARCs) for the sale of 46 Non-Performing Assets (NPAs) accounts, amounting to Rs 11,500 crore.
Accroding to the bank, its gross NPA ratio has significantly declined from 11.69 percent as of March 31, 2021, to 2.72 percent as of September 30, 2024. Net NPAs have also reduced from 3.58 percent in March 2021 to 0.47 percent in Q2 FY 2024.
The sale will be conducted through an e-auction under the open auction method on a portfolio basis. The portfolio comprises 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 Expression of interest (EOI) by January 18, to participate in the e-auction scheduled for 30th January 2025. Details regarding the accounts and terms of sale are available in the sale notification on the Bank's website (www.iob.in). For more details prospective participants are requested to visit the Bank's website (www.iob.in) and navigate to the TENDERS section, ARC-Cell.
The MD & CEO of Indian Overseas Bank Ajay Kumar Srivastava, emphasized the Bank’s unwavering focus on value maximization through robust recovery measures, including SARFAESI actions, compromise settlements, and sales to ARCs. He also mentioned that the sale of MSME and educational loan portfolios to ARCs is also under active consideration, aligning with the Bank’s strategy to enhance recovery outcomes and asset quality.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)