IOB (Indian Overseas Bank) plans to sell non-performing assets (NPAs) worth ₹13,000 crores, which is one of the largest sales of NPAs in the country. The bank is divesting 92 NPAs with a combined value of ₹13,000 crores through an auction process. This move is aimed at reducing the bank’s NPA levels and improving its financial health. The sale of NPAs is expected to be completed by the end of September.
The bank has already received expressions of interest from several bidders, including Asset Reconstruction Company (India) Ltd (ARCIL) and Edelweiss Asset Reconstruction Company Ltd. The auction process is likely to be completed by the end of September, and the sale proceeds will be used to augment the bank’s capital and reduce its debt.
IOB has been facing significant stress due to high levels of NPAs, which have been affecting its profitability and financial performance. The sale of these NPAs is seen as a significant step towards recovering its financial health and reducing its dependence on the Reserve Bank of India (RBI) for funds.
Source: https://www.msn.com/en-sg