IDBI Bank has been focusing on reducing bad loans by selling NPAs and resolving stressed assets. The bank is looking to bring down its gross NPA ratio, which was 4.69% as of December 2023, gradually with a recovery target of ?3,000 crore. It wants to maintain the net NPA level at below 1%.
The offer is the first from NARCL to banks in more than four months and the first since changes in the top management of the bad bank. Former SBI managing director Diwakar Gupta took over as NARCL chairman in early December, months after Karnam Sekar quit in August amid differences over the functioning of the institution.
The government-backed bad loan aggregator, National Asset Reconstruction Co (NARCL), has made a ₹270 crore offer for Pink City Expressway Private Limited (PCEPL), the company which was formed to build, operate and maintain the six-lane Gurugram-Kotputli-Jaipur section of the Delhi-Jaipur highway. PCEPL has ₹1,761 crore of outstanding loans and another ₹30 crore of bank guarantees. The bad bank acquires loans by paying 15% of the amount in cash and the rest in security receipts (SRs), which are to be matched with recovery over time.
Twelve investors, including Aditya Birla ARC, Asset Reconstruction Company India (Arcil), ASREC, Invent ARC, Omkara ARC, Phoenix ARC, UV ARC, Alchemist ARC and Prudent ARC have shown preliminary interest to acquire bad loans of IDBI Bank amounting to Rs 8,842 crore., , asset reconstruction companies, idbi bank, loans, Net NPAs (non-performing assets)
Around twelve investors, including Asset Reconstruction Company India (Arcil), Aditya Birla ARC, Invent ARC, Omkara ARC, ASREC, UV ARC, Alchemist ARC, Phoenix ARC, and Prudent ARC, have shown preliminary interest in acquiring IDBI Bank s bad loans amounting to ₹8,842 crore. These distressed assets span 12 accounts, including VOVL, Jaiprakash Associates, and Wind World India.