Corporation Bank may seek advisor to identify, sell NPAs

Corporation Bank is seeking a financial advisor to assist in the identification and sale of non-performing assets (NPAs), a person close to the development said.

"The advisor will help identify, collate the data and manage the sale and valuation. They will also handle the marketing of the sale portfolio,” the source added.

Corporation Bank will issue a tender for the advisor soon," he said. Banks have been resorting to NPA sales to contain the impact of delinquencies on their balance sheets.

Corporation Bank's net NPAs in the second quarter were at 0.39 per cent of total loans, up from 0.29 per cent an year ago. Gross NPAs were at 1.18 per cent.

Chairman and Managing Director Ramnath Pradeep expects net NPAs to be at 0.31-0.35 per cent and gross NPAs to be around one per cent at the end of the financial year.