The state-owned Indian Overseas Bank said that it is selling Rs 11,500 crore worth of non-performing assets to asset reconstruction firms.

In an official announcement, the lender with its headquarters in Chennai announced that it is selling 46 loan accounts and asked the ARCs to register interest.

It stated that an e-auction using the open auction method on a portfolio basis will be used to carry out the sale. The portfolio will include accounts financed under a consortium arrangement, some of which will be admitted under NCLT.

It further stated that potential purchasers may place bids on individual accounts, portfolios, or groups of accounts.

Ajay Kumar Srivastava, the managing director and chief executive of IOB, stated that the organization intends to maximize value through recovery tactics, such as selling to ARCs, utilizing SARFAESI litigation, and reaching compromise settlements.

To take part in the e-auction set for January 30 in the case of 46 accounts, eligible ARCs and other transferees can submit their EoI by January 18.

According to him, the bank is also thinking of selling its portfolios of small company and educational loans to ARCs, saying that this is in line with the plan to improve asset quality and recovery results.

As of September, the bank's gross non-performing assets (NPAs) were 2.72 percent, a decrease from their peak of 11.69 percent in March 2021.