[ad_1]
IDBI Bank, PNB Housing Finance and term lending institution SICOM Separately working on a plan to sell almost the entire distressed loan book, replicating the sale processes followed by yes bank And bandhan bank To clean up its books in the last financial year, multiple people with knowledge of the matter said.
yes bank And bandhan bank Has sold off majority of its distressed loan portfolio to asset reconstruction companies to start FY2024 with a clean slate.
“Over the past quarter, Special Situation Funds have started negotiating IDBI The bank will acquire non-performing loan book of up to Rs 25,000 crore,” said one of the persons cited above. “Talks between the lender and the fund house are at an early stage. IDBI Bank has made it clear that it will only accept all-cash deals, meaning only those with deep pockets should bid.”
PNB Housing Finance has invited offers to sell loan book of about Rs 3,000 crore comprising 7-8 large accounts. Alvarez and Marsal, which is advising the housing finance lender, has shortlisted four to five fund houses last week for the portfolio sale, said one of the people cited above.
SICOMThe state-owned term loan institution invited offers to sell 48 accounts with an outstanding of Rs 9,724.5 crore as on April 5. SIDBI has invited expression of interest on April 17 for the portfolio, which has five pools of loans. Lenders have proposed e-auction on May 25.
The person said that these lenders have offered to conduct a Swiss challenge auction if they accept the offer made by the anchor bidder.
Last year, yes bank sold about ₹48,000 crore to JC Flower Asset Reconstruction Company, while bandhan bank sold ₹13,800 crore in two installments to Kotak Mahindra Bank Backed Phoenix ARC. L&T Finance sold accounts worth ₹2,707 crore to Avenue Capital-backed Asset Reconstruction Company of India.
While L&T Finance and yes bank Sold its NPAs under 15:85 structure, Phoenix ARC paid a major part of the consideration in the form of cash bandhan bank,
The proposed sale of NPAs by IDBI Bank comes when its major shareholders – the government and LIC of India – is looking for buyers for the sale of its 60.7% stake in the bank. IDBI’s gross NPAs at the end of December 2022 stood at ₹23,535 crore, which is 13.8% of its gross loan book.
The Rs 25,000-crore NPA portfolio that the bank has shortlisted also includes write-off loans and the recovery on these accounts will be directly reflected in their bottom line, said a person cited above.
[ad_2]
Source link