Andhra Bank is planning to sell bad loans worth about Rs 1,388.21 crore to asset reconstruction companies (ARCs), a newspaper advertisement by the bank said on Monday. The bad loans are in 29 accounts, the bank said.
The bank’s new CEO, Suresh Patel, who took over last week, had said that an effort was on to reduce the NPAs by the end of the fiscal.
“Andhra Bank invites expression of interest (EoI) from ARCs for the proposed sale of its NPAs comprising about 29 accounts with principal balance of Rs 1,388.21 crore,” the bank said.
In the September quarter, the bank’s net profit grew 74% to Rs 251 crore on the back of low deposit costs and higher net interest margins against Rs 144 crore in the corresponding quarter last year. The bank’s total income increased by Rs 7.24% to Rs 4,744 crore on a year-on-year basis, Suresh Patel said.