This has been done to integrate the market regulator's framework with the RBI's regulatory framework.
The plan to transfer the non-performing assets to an ARC was approved by the bank's board of directors on December 21.
The written off amount was on account of small businesses and agriculture loans (SBAL) or micro-credit advances, the source said.
Bandhan bank said it will bid as per Swiss challenge method decision of sale.
IDBI Bank said it intends to transfer the stressed loan "on all cash basis" at a reserve price of Rs 810 crore.
YES Bank Board had on July 15 approved US based JC Flowers Asset Reconstruction Company's bid to be considered the base bid for the proposed sale of stressed assets via Swiss challenge auction.
The sale of GNPAs would be done through Swiss Challenge method
More than speculating on what the exact mechanism would be it is the important to find a resolution for bad loans whatever the mechanism, said PK Gupta, MD, SBI.
At the end of Q3, a whopping 41 percent of corporate debt is with companies whose earnings are less than their interest outgo. Credit Suisse's MD and Head of Research Ashish Gupta shares his detailed analysis with CNBC-TV18's Latha Venkatesh on a special show - Indianomics.
Arun Tiwari, chairman and managing director of Union Bank believes it augurs well for banks.
With the slowdown of the Indian economy, a number of companies/projects are under stress. As a result, the Indian banking system has seen increase in NPAs and restructured accounts during the recent years.
Weighed down by stressed loans of nearly USD 150 billion - equivalent to more than 10 percent of bank assets in the country - and against a backdrop of the slowest economic growth in a decade, Indian banks are bringing an unprecedented intensity to their recovery efforts.