Bandhan Bank on Wednesday stated it has received a Rs 801-crore binding bid from an ARC on the security receipt consideration foundation for group mortgage and small commercial enterprise and agri loan (SBAL) written-off portfolio with top notch of Rs eight,897 crore.
“We would really like to inform that pursuant to the approval of the board of administrators of the bank to switch group loan and SBAL written-off portfolio to asset reconstruction organization (ARC), the bank has obtained binding bid from an ARC, amounting to Rs 801.00 crore, on the safety receipt consideration foundation, for the written-off portfolio with remarkable of Rs eight,897.00 crore,” the financial institution said in a stock alternate submitting.
“The financial institution shall cross for bidding as in keeping with the Swiss undertaking approach and choice of sale will be taken as consistent with extant guidelines governing Swiss project approach and the relevant coverage of the bank,” the lender said.
Notably, Bandhan financial institution wrote off microfinance loans (on the whole institution mortgage) worth around Rs three,500 crore during the second zone this monetary. Its net profit for the second one area of FY23 fell seventy six% on a quarter-on-sector basis due to better provisions as it wrote off microfinance loans. The bank pronounced a internet income of Rs 209.3 crore at some stage in Q2FY3, compared with a net earnings of Rs 886.5 crore inside the preceding zone.
Interestingly, Yes Bank concluded mission of its Rs forty eight,000-crore stressed asset loan portfolio to JC Flowers Asset Reconstruction agency earlier this month. The bank had earlier declared JC Flowers ARC because the winner of the Swiss Challenge manner on the market of its identified portfolio of burdened belongings.
At the give up of the second region this economic, Bandhan Bank’s gross non-appearing property (NPAs), in absolute phrases, stood at Rs 6,853.85 crore, witnessing a fall of 21.79% year-on-yr. Sequentially, NPAs declined with the aid of a marginal 1.83% quarter-on-sector, from Rs 6,967.54 crore for Q1FY23. The gross NPA ratio came all the way down to 7.19% during Q2FY23 from 10.8% for the duration of Q2FY22.
In the second region of FY23, sixty six% of the lender’s NPA clients and 62% of its restructured customers paid their dues, both in component or in complete. Total coins recovery and upgradation stood at Rs 529 crore.
“We are engaged with our clients on a ordinary foundation to inspire them to make sure timely price. We are confident that it’s far best a be counted of time earlier than these clients regularise their debts fully, and then we count on to see a massive drop in gross NPAs within the next couple of quarters,” Bandhan Bank MD and CEO Chandra Shekhar Ghosh said all through the second one sector earnings name in October.
On Wednesday, the financial institution scrip on the BSE closed zero.14% lower at Rs 243.05.