Bandhan Financial institution which not too long ago obtained bids for offloading its written-off portfolio to an asset reconstruction firm (ARC), is claimed to be the primary such issuance by this Kolkata-based non-public lender. Notably, Bandhan Financial institution’s written-off portfolio with an impressive of ₹8,897 crore is on account of small companies and agriculture loans (SBAL) or micro-credit advances.
Earlier, this week, Bandhan Financial institution obtained bids price ₹801 crore from an asset reconstruction firm (ARC) for the written-off portfolio with an impressive of ₹8,897 crore.
Sources instructed PTI on Friday stated, that is for the primary time that the financial institution will promote pressured loans to an ARC.
Bandhan Financial institution’s board has authorised the switch Group Mortgage and SBAL written-off portfolio to Asset Reconstruction Firm (‘ARC’).
In its regulatory submitting on Wednesday, Bandhan Financial institution stated that it shall go for bidding as per the Swiss problem technique and the choice of sale shall be taken as per extant tips governing the Swiss problem technique and the related Coverage of the Financial institution.
Additional, the sources added that the financial institution will obtain bids on the reserve value of ₹801 crore below the swiss problem technique, and the very best bidder will pay money for the portfolio.
On BSE, Bandhan Financial institution shares closed at ₹226.85 apiece down by 2.09%. The lender’s market cap is round ₹36,541.58 crore.
By finish of the September 2022 quarter, Bandhan Financial institution’s gross non-performing belongings improved to 7.19% as in opposition to 10.8% in Q2FY22. The financial institution’s web NPAs additional improved to 1.86% in opposition to 3.04% in Q2 of FY22. Additionally, the lender has written off about ₹3,535 crore of micro-credit loans in the course of the second quarter of FY23. Nevertheless, the financial institution’s provisions doubled from ₹643 crore within the 12 months earlier to ₹1,279.7 crore within the September 2022 quarter.
Lately, Sure Financial institution offloaded its pressured belongings mortgage portfolio to the tune of a whopping ₹48,000 crore to J.C. Flowers Asset Reconstruction (JC Flowers ARC). Sure Financial institution too had carried out a clear bidding course of primarily based on the Swiss Problem technique below the aegis of RBI’s grasp route on the switch of mortgage exposures. The method was carried out with the bids submitted by JC Flowers being designated because the ‘Base Bid’.
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Supply: Live Mint