Bandhan Bank on Wednesday said it has received a binding bid from an ARC (Asset Reconstruction Company) amounting to Rs 801 crore for the written-off portfolio with outstanding of Rs 8,897 crore.
“We would like to inform that pursuant to the approval of the Board of Directors of the Bank to transfer Group Loan and SAL written off portfolio to Asset Reconstruction Company), the Bank has received binding bid from an ARC, amounting to Rs 801 crore,” said Bandhan Bank in a stock exchange filing.
SBAL is Small Business and Agriculture Loan.
“The Bank shall go for bidding as per Swiss challenge method and decision of sale shall be taken as per extant guidelines governing Swiss challenge method and the relevant Policy of the Bank,” added Bandhan Bank.
On Wednesday, Bandhan Bank’s stock closed trading 0.1% lower at Rs 243.05.
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Recently, Yes Bank said it completed the transfer of bad loans worth Rs 48,000 crore to private equity firm JC Flowers, in a deal aimed at cleaning up its balance sheet.
The deal, the largest sale of bad loans in the Indian banking sector yet, comes more than two years after Reserve Bank of India stepped in to take control of the lender after a dramatic rise in toxic assets alarmed investors and depositors.
