Indian Overseas Bank invites EOI to sell Rs 11,500 cr NPA

Indian Overseas Bank

State-owned lender, Indian Overseas Bank has invited expression of interest from asset reconstruction companies (ARCs) for the sale of 46 non-performing loans accounts worth Rs 11,500 crore, according to the press release.

The last date to submit the expression of interest is on January 18 and e-auction is scheduled on January 30. The process of due diligence will commence from January 10 and will be completed by January 28.

The bank has said that the bids shall be submitted on full cash basis only. The bank has set a reserve price of Rs 2290 crore on 100 percent cash basis.

The portfolio comprises accounts financed under a consortium arrangement, with some admitted under NCLT, bank said in a release.

These accounts include NPA of Videocon Industries Ltd with an outstanding of Rs 900.82 crore as on December 31, 2024, Frost International Pvt Ltd with outstanding of Rs 839.50 crore, Rotomac Global Pvt Ltd with outstanding of Rs 750.55 crore, IVRCL Limited having an outstanding of Rs 620.93 crore as on December 31, 2024, and Videocon Oil Ventures Limited with outstanding of Rs 480.09 crore, bank said in a release.

The list of NPAs also include accounts of Jet Airways (India) Limited, Reliance Communication, Reliance Telecom, IL&FS Financial Services, and Future Enterprises, release said.

“The sale of MSME and educational loan portfolios to ARCs is also under active consideration, aligning with the Bank’s strategy to enhance recovery outcomes and asset quality,” said Ajay Kumar Srivastava, managing director and chief executive officer of bank.

The Bank’s gross NPA ratio has significantly declined from 11.69 percent as of March 31, 2021, to 2.72 percent as of September 30, 2024. Net NPAs have also reduced from 3.58 percent in March 2021 to 0.47 percent in Q2 FY 2024.