IOB E-Auction: bank to sell 92 non-performing loans with outstanding of ₹13,472 crore
Upstox
2 min read • Updated: May 6, 2024, 3:54 PM
Summary
Indian Overseas Bank (IOB) announced plans to sell 92 non-performing loans (NPAs) with a staggering outstanding amount of ₹13,472 crore through an e-auction scheduled for May 28th. This move aims to further improve the bank's financial health, as its Gross NPA levels have significantly reduced from 11.69% in March 2021 to 3.90% by December 2023.
Indian Overseas Bank (IOB) on Sunday said it will sell 92 non-performing loans with an aggregate outstanding of ₹13,471.68 crore through an e-auction on May 28. The public sector lender invited expressions of interest (EoI) from asset reconstruction Companies (ARCs) and other eligible transferees by May 13 to participate in the auction process.
"Indian Overseas Bank has published sale notification pertains to the sale of 92 NPA loans, collectively amounting to an aggregate Book Outstanding of ₹13,471.68 crores, offered on portfolio basis in 2 lots through e-auction under the open auction method," IOB said in a statement.
The first portfolio encompasses 46 accounts financed under consortium arrangements, 3 accounts under Multiple Banking arrangements, with the remaining 2 accounts being sole banking ventures. Furthermore, 38 accounts within the portfolio are formally admitted under the purview of NCLT. The second portfolio consists of 41 sole banking accounts, it added.
Interested Asset Reconstruction Companies (ARCs) and other eligible transferees are cordially invited to submit Expressions of Interest (EOI) by May 13, 2024, to participate in the forthcoming e-auction scheduled for May 28.
The bank's Gross NPA (GNPA) levels plummeted from 11.69% as of March 31, 2021, to 3.90% by December 31, 2023.
The shares of Indian Overseas Bank closed 1.89% lower at ₹65 on NSE on 6 May, 2024.
With inputs from PTI.