IOB puts 92 bad loans worth Rs 13,000 crore on the block
Indian Overseas Bank (IOB) has put on sale 92 bad loan accounts totalling ₹13,472 crore, including Videocon Industries (₹900 crore), Frost International (₹839 crore) and Rotomac Global (₹750 crore), for a reserve price of over ₹4,000 crore.
The sale is the Chennai-based bank's attempt to explore other avenues for recovery when cases in the National Company Law Tribunal (NCLT) are delayed beyond any timeline, IOB executive director Joydeep Dutta Roy said.
«Asset reconstruction companies (ARCs) have the focus to diligently follow up resolutions and have specialised teams to complete the process,» Roy said. «We thought that this is a good time to start this process even as our NPAs (non-performing assets) are on the downward trend.»
The bank has divided these accounts into two lots. The first one includes all large accounts with a total outstanding of ₹12,353 crore.
IOB has set a reserve price of ₹2,921 crore on these loan accounts, expecting a full cash recovery of about 24% to its outstanding loans.
These large accounts have still not found any resolution through the NCLT for years because of legal as well as procedural delays.
Besides Videocon, Frost and Rotomac, these accounts include ABG Shipyard (₹627 crore), IVRCL (₹621 crore) and Vadraj Cement (₹522 crore). Jet Airways, Reliance Communications, Amtek Auto, and Punj Lloyd are also part of the list.
Separately, the bank has put for sale ₹1,119 crore of secured loan accounts where it is the only lender at an aggressive ₹783-crore reserve price, expecting a
