Indian Overseas Bank To Sell Rs 11,500 Cr In Npas To Arcs

(MENAFN- KNN India) New Delhi, Jan 10 (KNN) Indian Overseas Bank (IOB), the Chennai-based public sector lender, announced on Thursday its intention to sell 46 non-performing loan accounts valued at Rs 11,500 crore, marking a significant step in its ongoing efforts to reduce non-performing assets (NPAs).

CEO Ajay Kumar Srivastava emphasised the bank's commitment to maximising value through comprehensive recovery measures, including NPA sales and settlements.

The initiative extends to selling stressed loans in the MSME and educational portfolios to Asset Reconstruction Companies (ARCs), reflecting the bank's strategic approach to improving recovery outcomes and asset quality.

The bank has demonstrated substantial progress in managing its NPAs, with gross NPAs declining from 11.69 percent in March 2021 to 2.7 percent as of September 2024. Similarly, net NPAs have shown significant improvement, dropping from 3.58 percent to 0.47 percent during the same period.

As part of this recovery initiative, IOB has invited expressions of interest from ARCs through an e-auction process under the open auction method on a portfolio basis.

The assets available for sale include accounts financed under consortium arrangements, with some cases currently under National Company Law Tribunal (NCLT) proceedings. Potential buyers have the flexibility to bid for the entire portfolio, individual accounts, or specific groups of accounts.

The bank has set January 18 as the deadline for interested ARCs and other eligible transferees to submit their bids, with the e-auction scheduled for January 30.

(KNN Bureau)

MENAFN10012025000155011030ID1109077533