IDBI Bank to sell 20 bad loans worth ₹9,756 crore1 min read . Updated: 25 Sep 2019, 10:50 AM IST
- In July, the lender had said it would sell its stake in 19 unlisted companies for at least ₹175 crore
- The bank was looking for bidders for more than 170 million shares in companies
Mumbai: Life Insurance Corp-owned private sector lender IDBI Bank has sought bids from asset reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs) and other financial institutions to sell 20 non-performing loans worth ₹9,756 crore, according to a notice on its website.
The largest of the lot is JBF Petrochemicals Ltd ( ₹1,736 crore), followed by Sai Wardha Power Generation Ltd ( ₹1,295 crore), Lanco Amarkantak Power Ltd ( ₹1,077 crore) and Reliance Communications Ltd ( ₹721 crore), among others.
“IDBI Bank intends to sell its identified non-performing assets on cash or cash: security receipts basis. However, please note that the sale will be subject to final approval by the competent authority of the bank," said the notice.
The bank said the sale of assets will be on ‘as is where is and as is what basis’ and without recourse to IDBI Bank.
“The interested ARCs/Banks/NBFCs/FIs can conduct due diligence of these assets from 25 September through e-data room, after executing a non-disclosure agreement (NDA) with the bank, if not already executed," it said.
In July, the lender had said it would sell its stake in 19 unlisted companies for at least ₹175 crore. The bank was looking for bidders for more than 170 million shares in companies, including Neelachal Ispat Nigam Ltd, Haldia Petrochemicals Ltd, Gujarat NRE Coke Ltd, Konaseema Gas Power Ltd and Mysore Paper Mills Ltd.
For the three months ended June, the bank posted a net loss ₹3,800.84 crore, compared with a loss of ₹2409.89 crore in the year-ago period. Provisions during the quarter increased 20.93% to ₹6,332.05 crore as against ₹5,235.96 crore in the year-ago quarter. In the March quarter, the bank had set aside ₹8,532.78 crore in provisions.