HDFC Bank plans to sell Rs 1,028 cr bad loans via Swiss challenge auction

Country’s largest private sector lender, HDFC Bank, has put on the block two bad loan portfolios totalling Rs 1,028 crore for sale through Swiss challenge auctions and invited counter bids from entities interested in acquiring the assets.

 

The bank in an auction notice said that it has put up for sale a non-performing retail portfolio comprising mortgage and home loans, commercial vehicle loans, and agriculture loans of Rs 478 crore through a Swiss challenge auction and invited counter bids from entities on a 100 per cent upfront cash basis.

 

Of the Rs 478 crore, Rs 329 crore comes from 1,973 mortgage and home loan accounts, Rs 77 crore from 3,232 commercial vehicle loan accounts, and Rs 72 crore from 2,074 agriculture loan accounts.

 

Additionally, the bank has put up for sale Rs 550 crore of non-performing loans, which includes SME loans, and invited bids from entities interested in acquiring the assets on an upfront 100 per cent cash basis through a Swiss challenge auction.

 

The bank’s gross non-performing assets (NPA) ratio at the end of December 2024 stood at 1.4 per cent and net NPAs stood at 0.5 per cent. While the retail segment reported GNPA ratio of 0.8 per cent, commercial and rural banking (CRB) segment NPAs stood at 2 per cent, and CRB, without agriculture segment NPA stood at 1.3 per cent.