Indian Overseas Bank (IOB) has invited Expressions of Interest (EOIs) from Asset Reconstruction Companies (ARCs) for the sale of 46 Non-Performing Assets (NPAs) amounting to Rs. 11,500 crore. This e-auction will be conducted on January 30, 2025, under an open auction method, allowing bidding on a portfolio, individual accounts, or groups of accounts.
The bank’s gross NPA ratio has significantly improved, dropping from 11.69% in March 2021 to 2.72% as of September 2024. Net NPAs have also reduced from 3.58% to 0.47% during the same period.
The portfolio includes accounts financed under consortium arrangements, with some admitted under NCLT. Eligible ARCs can submit EOIs by January 18, 2025. Details are available on IOB’s website under the TENDERS section, ARC-Cell.
Mr. Ajay Kumar Srivastava, MD & CEO of IOB, emphasized the bank’s focus on value maximization through recovery measures like SARFAESI actions, compromise settlements, and ARC sales. He also highlighted plans to sell MSME and educational loan portfolios to ARCs, aligning with the bank’s strategy to enhance asset quality and recovery outcomes.
