Business News: Chennai: In one of the largest sale of bad loans, state-owned Indian Overseas Bank has announced the sale of 92 NPA loans with a collective value of R.
Indian Overseas Bank announces the sale of 92 NPA loans worth Rs 13,471 crore, including accounts like Videocon, Lanco, IL&FS Financial Services, Jet Airways, and Reliance Communications. Expressions of interest are called from asset reconstruction companies for the auction of these NPAs.
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 assets on the block are a dozen cases including loans to Videocon Oil Ventures (VOVL), Jaiprakash Associates (JAL) and Wind World, which are facing various delays in their resolution.
IDBI Bank recently reported its September quarter results, where it logged 59.8 per cent YoY rise in net profit at Rs 1,323.3 crore compared with Rs 828.1 crore in the same quarter last year.