Bandhan Bank Approves Transfer Of Rs 775.6-Crore Housing Finance NPAs To ARC
The bank has received a binding bid for an outright cash payout of Rs 280.4 crore and will now hold a Swiss Challenge auction.
Bandhan Bank Ltd. on Thursday approved to transfer housing finance bad loans worth Rs 775.6 crore to an asset reconstruction company.
The repayments on these advances were due for more than 180 days, according to an exchange filing.
The bank has received a binding bid for an outright cash payout of Rs 280.4 crore, or 36.15% of the outstanding amount, for these NPAs, it said. The private lender will now auction the NPAs through the Swiss Challenge method, with the highest bidder getting the portfolio.
For the quarter ended September, the lender's gross NPAs stood at 7.32%, up 56 basis points from 6.76% as of June. Net NPAs rose 14 basis points to 2.32% sequentially.
In December last year, the bank sold its stressed assets for the first time to an ARC. These included NPAs worth Rs 8,897 crore on small business, agriculture and micro-credit loans.
