Edelweiss, Phoenix among ARCs vying for IOB's Rs 13,472-crore NPAs
asset reconstruction companies have shown interest in acquiring a nearly ₹13,500-crore loan portfolio of Indian Overseas Bank (IOB), three sources familiar with the development said.
Among the ARCs expressing interest are Edelweiss ARC, Phoenix ARC, Omkara ARC, and Prudent ARC.
IOB has set a deadline of May 28 for the submission of bids for the portfolio of ₹13,472 crore of loans, following the closure of the expression of interest today. In the event of a single bid for any portfolio, the bank will conduct a Swiss auction, using that sole bid as the anchor, according to the notice issued by the bank on its official website.
The loan portfolio under consideration includes a mix of non-performing loans, including those currently undergoing insolvency proceedings in court and others not being considered under the Insolvency and Bankruptcy Code (IBC).
The portfolio is divided into two sets — the first set comprises 51 accounts with a cumulative outstanding loan amount of ₹12,353 crore as of March 31. IOB has set a reserve price of ₹2,921 crore for it, expecting a minimum recovery of 23.6%. Within these 51 accounts, 38 are under the Corporate Insolvency Resolution Process (CIRP), while the remaining 13 are not subject to CIRP.
The second set consists of 41 small-ticket accounts with a total loan outstanding of ₹1,119 crore, with a cash reserve price set at ₹783 crore by IOB, expecting a recovery of 70%.
Several ARCs have submitted expressions of interest primarily to conduct comprehensive due diligence on the
