State-owned Indian Overseas Bank has announced the sale of 92 non-performing assets (NPAs) for a total estimated value of Rs 13,471 crore, making it one of the largest bad loan sales to date. The list of non-performing accounts, which includes Videocon, Lanco, IL&FS Financial Services, Jet Airways, and Reliance Communications, has also been made public by the bank.
The IOB report states that as of March 31, 2024, Videocon Industries, Videocon Oil Ventures, and Videocon Telecommunication together accounted for an outstanding book of Rs 1,486 crore. The next is an exceptional book that together cost around Rs 1,283 crore and was written by Lanco Infratech, Lanco Babandh Power, Lanco Resources International, and Lanco Vidarbha Thermal Power. In order to transfer the non-performing accounts (NPAs) provided on a portfolio basis in two lots through an electronic auction, the bank requested expressions of interest from asset reconstruction businesses and other lenders.
According to an IOB statement on Sunday, the first portfolio consists of two solo banking venture accounts, three accounts under multiple banking arrangements, and 46 accounts funded under consortium arrangements.
It further said that 38 accounts in the portfolio are officially accepted under NCLT's jurisdiction. Of the two portfolios, forty-one are single bank accounts. At Rs 3,704 crore, or 27.5% of the entire value of the outstanding book that has been put up for sale, it has established a reserve price on a 100% cash basis. The bank hopes to conclude the auction by the end of the current fiscal year's first quarter (April–June) (FY25).
