IOB seeks bids for bad loans worth Rs180 crore

Indian Overseas Bank has put up for sale bad loans of nine accounts


Photo: Pradeep Gaur/Mint
Photo: Pradeep Gaur/Mint

Indian Overseas Bank on 8 February said it has invited bids for the sale of bad loans worth Rs180.68 crore during the current quarter. Banks, non-banking financial companies (NBFCs), securitization companies, asset reconstruction companies (ARCs) and foreign investors can put in bids by 28 February.

Due diligence by bidders will be completed by 23 February.

The lender has put up for sale bad loans of nine accounts, including Bombay Rayon Fashions Ltd (Rs62.58 crore), Rishraj Filaments Ltd (Rs30.33 crore), Swain Aluminium Pvt. Ltd (Rs18.51 crore) and Chandigarh Treasure Island (Rs32.21 crore).

“Bank may, if so desired, permit the bidders to increase their offer and in which case the negotiation will take place during the course of the day after opening of covers and the final offer should be submitted on the same day,” IOB said in a disclosure on its website.

All costs and expenses incurred to carry out the due diligence study or any other related process will be borne by the bidders, it added.

The bid covers will be opened on 1 March or any subsequent date.

During the quarter, the bank recovered loans worth Rs2,446 crore. On the other side, in the first nine months of this financial year, total recoveries stood at Rs5,981 crore.

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