Bandhan Bank Offloads Strained Home Loan Portfolio
Bandhan Bank announced its decision to offload its stressed home loan portfolio to an asset reconstruction company (ARC) on Thursday.
In a statement to exchanges, the bank disclosed the approval for transferring Rs 776 crore worth of home loans, which had been overdue for more than 180 days, to an ARC.
As part of this sale, the bank is set to retrieve 36 percent of the total amount, totaling Rs 280 crore, upfront in cash.
Banks often resort to selling assets to ARCs to alleviate the burden of bad loans on their books and free up the capital reserved for such loans.
As of the September 2023 quarter, Bandhan Bank registered a gross non-performing assets ratio of 7.32 per cent.
