Bandhan bank to sell Rs 775 cr home loans to Arcil
Bandhan Bank is selling its ₹775-crore affordable home loan portfolio to Avenue Capital-backed Asset Reconstruction Company India (Arcil) for ₹280 crore in an all-cash deal, said people with knowledge of the transaction. This transaction highlights the emerging stress in lower-income groups, where customers are unable to pay ₹10-12 lakh loans taken to buy their homes.
Arcil won the Bandhan Bank portfolio at an unchallenged Swiss challenge auction held on December 27. For the bank, the portfolio sale will equate to a recovery of 36%.
Arcil and Bandhan Bank did not respond to ET's request for comments.
Three other private lenders, RBL Bank, IndusInd Bank and Yes Bank, too are seeking buyers for their retail and micro, small and medium enterprises (MSME) portfolios, totalling in excess of ₹2,900 crore, said people from the banking sector. Separately, IndoStar Capital Finance, too, is seeking buyers for its ₹292-crore stressed retail book and has indicated a reserve price of ₹271 crore.
RBL Bank has invited offers for ₹1,100 crore retail and MSME pool; IndusInd Bank is also looking to sell a pool of ₹700 crore loans comprising credit card and personal loans.
Separately, Yes Bank has sought offers for a ₹1,143-crore retail portfolio comprising personal and vehicle loans, among others.
None of the three banks have indicated a reserve price for the portfolio sales. RBL Bank's portfolio includes ₹750 crore principal credit card portfolio and another ₹350 crore loan portfolio to the MSEM segment, said people with knowledge.
In the case of Yes Bank, the portfolio comprises a personal loan portfolio of ₹380 crore, vehicle loan books of ₹183 crore, credit card portfolio of ₹118 crore, commercial vehicle loan book of ₹119
