Utkarsh Small Finance Bank looking to sell Rs 355 cr of microfinance loans

Utkarsh Small Finance Bank on Friday said it is looking to offload Rs 355 crore worth of non-performing microfinance loans to asset reconstruction companies. The bank has set a reserve price of Rs 52 crore for the assets it is putting up for sale, which would translate into a recovery of 14.64 per cent. These loans are unsecured in nature and have been written off by the bank after being fully provided for.

 

Earlier this week, IndusInd Bank also put on the block non-performing microfinance loans worth Rs 1,573 crore, amid mounting stress in the microfinance sector. The reserve price set by the bank for selling the assets is Rs 85 crore, which would translate into a recovery of 5.04 per cent.