Public sector lender Indian Bank has sold non-performing assets (NPAs) worth Rs 600 crore to asset reconstruction companies (ARCs) in the March quarter of FY16
Public sector lender Indian Bank has sold non-performing assets (NPAs) worth Rs 600 crore to asset reconstruction companies (ARCs) in the March quarter of FY16, sources told FE. According to the sources, loans to Binani Cement, Kohinoor Group and Marg Group companies were sold to ARCs by the bank.
While Binani Cement and Marg Group assets were sold to Edelweiss ARC, it could not be immediately ascertained which company acquired Kohinoor Group’s loans.
Edelweiss ARC had started acquiring Binani Cement loans of close to R3,300 crore in the December quarter and the first tranche of loans were sold by public sector lender Central Bank of India. The bank had sold R340 crore loans given to the company. Other banks like the Indian Overseas Bank and Syndicate Bank had also put up Binani Cement loans for sale.
In the December quarter, lenders to Marg Group’s Karaikal Port planned to sell R860-crore loans to ARCs. The gross debt of the unlisted company is around R1,800 crore.
According to sources, Punjab National Bank, United Bank, Central Bank of India, Allahabad Bank and Oriental Bank of Commerce had put up their loans for sale to ARCs. Of the banks which wanted to sell loans, United Bank has the largest share at R250 crore, followed by PNB at Rs 240 crore.