Indian Overseas Bank Invites EOIs For Sale Of 46 NPA Accounts Worth Rs. 11,500 Crore
Eligible ARCs and other transferees may submit their Expression of interest (EOI) by 18th January, 2025
Indian Overseas Bank continues its focused efforts to reduce Non-Performing Assets (NPAs), achieving a remarkable improvement in asset quality. The Bank’s gross NPA ratio has significantly declined from 11.69% as of March 31, 2021, to 2.72% as of September 30, 2024. Net NPAs have also reduced from 3.58% in March 2021 to 0.47% in Q2 FY 2024.
As part of its ongoing recovery strategy, IOB has invited Expressions of Interest (EOIs) from Asset Reconstruction Companies (ARCs) for the sale of 46 accounts, amounting to Rs. 11,500 crore. The sale will be conducted through an e-auction under the open auction method on a portfolio basis. The portfolio comprises accounts financed under a consortium arrangement, with some admitted under NCLT. Prospective buyers can bid on a portfolio basis, individual accounts, or groups of accounts.
Eligible ARCs and other transferees may submit their Expression of interest (EOI) by 18th January, 2025, to participate in the e-auction scheduled for 30th January 2025. Details regarding the accounts and terms of sale are available in the sale notification on the Bank’s website (www.iob.in). For more details prospective participants are requested to visit the Bank’s website (www.iob.in) and navigate to the TENDERS section, ARC-Cell.
The MD & CEO of Indian Overseas Bank, Mr. Ajay Kumar Srivastava, emphasized the Bank’s unwavering focus on value maximization through robust recovery measures, including SARFAESI actions, compromise settlements, and sales to ARCs. He also mentioned that the sale of MSME and educational loan portfolios to ARCs is also under active consideration, aligning with the Bank’s strategy to enhance recovery outcomes and asset quality.
