BUSINESS

Bandhan Bank sells stressed home loans

Bandhan Bank on Thursday said that it will sell its stressed home loan portfolio to an asset reconstruction company.

Read More: Zomato is CLSA’s top pick in consumer space; foreign brokerage shares target price

The bank has approved the transfer of 7.76 billion rupees ($93.23 million) in home loans, which were overdue by more than 180 days to an asset reconstruction company (ARCs), it said in a release to exchanges.

The bank will recover 36% of this amount or 2.8 billion rupees upfront in cash as part of the sale, it said.

Banks sell assets to ARCs to help reduce the level of bad loans on their books and release the capital they need to set aside against such loans.

Read More: Cumin prices to sustain at around Rs 30,000 per quintal

Bandhan Bank had a gross non-performing assets ratio of 7.32% at the end of the September 2023 quarter.

Source :
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top