The board of directors of Bandhan Bank on December 21 approved the transfer of non-performing loans (bad loans) amounting to Rs 776 crore to an asset reconstruction company (ARC), as indicated in the bank's filing to the stock exchanges. The loans being transferred to the ARC are those that have been outstanding for more than 180 days.
The outstanding non-performing assets (NPAs) of the housing finance portfolio of the bank were as of September 30, 2023.
The lender has received a binding bid of Rs 280.39 crore, which is 36.15 percent of the outstanding pool for the said NPA portfolio, on Outright Cash consideration basis, the company said.
“The Bank is going for bidding as per the Swiss Challenge method and the decision of sale shall be taken as per the extant guidelines governing the Swiss Challenge method and the relevant policy of the Bank,” the lender said in an exchange filing.
The bank's gross non-performing asset (GNPA) in the July-September quarter increased by 14.8 percent YoY. In absolute terms, gross NPA was at Rs 7,874 crore crore in the July-September quarter, as compared to Rs 6,854 crore in a year ago period. In the previous quarter, gross NPA stood at Rs 6,961 crore.
Net NPA ratio of the bank stood at 40 percent YoY in July-September. The net NPA in the reporting quarter was at Rs 2,366 crore, as against Rs 1,679 crore in a similar period last year.
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