IOB invites EoIs for Rs 1,067 crore bad loans through open offer

State-owned Indian Overseas Bank has invited expressions of interest (EoIs) from asset reconstruction companies (ARCs) to acquire a portfolio of non-performing assets (NPAs) worth Rs 1,067.46 crore through an open auction on August 13, according to the bank’s loan auction document. The NPA portfolio consists of 37 accounts with books outstanding of Rs 10 crore and above.

The state-owned lender has set a reserve price of Rs 587.10 crore for its portfolio of NPAs, aiming for a recovery of 55 per cent of the total value. Among the 37 non-performing accounts in the portfolio are several significant ones, including DRA Industries Ltd, Oceanic Bio-Harvests, Rajesh Gems & Jewels Pvt Ltd, and Helarpuri Spinning Mills.

ARCs interested in acquiring the bad loans have to complete their due diligence on the accounts by August 12, following which the bank would invite binding bids, on a full cash basis, for the portfolio of NPAs on August 13.

In case a sole bid is received under the open auction process, the account will be put up for e-auction once again under the Swiss Challenge Method considering the bid amount as the base price, the auction document said.

In the preceding quarter (Q1 FY25), the state-owned lender had put up for sale NPAs worth Rs 13,471.68 crore in two lots. The first lot consisted of 51 accounts with an outstanding exposure of Rs 12,352.81 crore while the second lot consisted of 41 accounts with an outstanding exposure of Rs 1,118.87 crore.