IOB to sell Rs 457-crore MSME NPAs, eyes 60% recovery
economictimes.indiatimes.comIOB) has put a ₹457- crore portfolio of non-performing assets (NPAs) from micro, small and medium enterprises (MSMEs) on sale The bank expects a minimum of 60% recovery with half of it in cash, documents accessed by ET showed.
In a notification on its website, the bank said the portfolio includes 91 MSME loan accounts with outstanding of between ₹3 crore and ₹10 crore. The bank has set a ₹274 crore reserve price which is 60% of the total outstanding, of which it expects at least half, or ₹137 crore, in cash.
«Preference will be given to bids or offers with a higher cash portion...management fee would be 1.5% per annum of net assets value… for first three years, 1.25% for the fourth, fifth and 0.75% for the sixth year onwards,» the bank said inviting bids from asset reconstruction companies, banks and alternative investment funds.
Bids will commence on November 28 through e-auction, the bank said.
«This is an early sign of the likely increase in NPAs from retail and MSME accounts which are bearing the brunt of the sharp increase in rates in the last one-and-a-half years.
