Bank of India puts up NPAs with outstanding Rs 1,500 cr for sale - Microsec

Public sector lender Bank of India (BOI) has put on sale non-performing assets (NPAs) of 64 accounts with outstanding balance of Rs 1,552 crore as step to clean up balance sheet. Some of the borrowers whose NPAs are being sold include Bombay Stock Exchange (BSE)-listed -- Pyramid Saimira (multiplex operator), Koutons Retails, a retailer of readymade and fashion wear, and XL Energy. Other names include Zoom Developers, Victory Transformers and Victory Electricals.

This is first time that bank is attempting to sale of bad loans. Where there is security (including collateral) for account, Bank is trying to explore possibility (for auction). Besides direct recoveries, sale is one more route for realizing outstanding.

Impact:- Partly Positive for the Bank as it has made 100% provision in most of it (according to the management), so any recovery may boost its profitability.

Source : Equity Bulls

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