PNB Housing Finance, others in push to offload bad loans
ECONOMY & POLICY

PNB Housing Finance, others in push to offload bad loans

Separately, IDBI Bank, PNB Housing Finance, and term-lending institution Sicom are working on plans to sell almost the entire distressed loan books, replicating the sale processes used by Yes Bank and Bandhan Bank to clean up their books last fiscal year.

Yes Bank and Bandhan Bank have sold the majority of their distressed loan portfolios to asset reconstruction companies in order to begin fiscal year 2024 on a fresh slate. Last quarter, special situation funds began talks with IDBI Bank to acquire a non-performing loan book worth up to 25,000 crore. The discussions between the lender and the fund houses are in their early stages. IDBI Bank has made it clear that it will accept only an all-cash deal, implying that only those with deep pockets should bid.

PNB Housing Finance has invited bids to sell a loan book worth approximately 3,000 crore, which includes 7-8 large accounts. Last week, Alvarez and Marsal, which is advising the mortgage lender, shortlisted four to five fund houses for the portfolio sale.

Sicom, the government-owned term lending institution, invited bids on April 5 to sell 48 accounts with total debts of 9,724.5 crore. On April 17, Sidbi invited expressions of interest for the portfolio, which consists of five loan pools. On May 25, the lenders have proposed an e-auction. If the anchor bidder's offer is accepted, these lenders have proposed a Swiss challenge auction.

Last year, Yes Bank sold almost ₹48,000 crore to JC Flowers Asset Reconstruction Company, while Bandhan Bank sold ₹13,800 crore in two tranches to Kotak Mahindra Bank-backed Phoenix ARC. L&T Finance sold ₹2,707 crore of accounts to Avenue Capital-backed Asset Reconstruction Company of India.

Also Read
Patcher: A software tool for updating infrastructure as a code
Sonu Nigam purchases two offices in Andheri, Mumbai

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

Separately, IDBI Bank, PNB Housing Finance, and term-lending institution Sicom are working on plans to sell almost the entire distressed loan books, replicating the sale processes used by Yes Bank and Bandhan Bank to clean up their books last fiscal year. Yes Bank and Bandhan Bank have sold the majority of their distressed loan portfolios to asset reconstruction companies in order to begin fiscal year 2024 on a fresh slate. Last quarter, special situation funds began talks with IDBI Bank to acquire a non-performing loan book worth up to 25,000 crore. The discussions between the lender and the fund houses are in their early stages. IDBI Bank has made it clear that it will accept only an all-cash deal, implying that only those with deep pockets should bid. PNB Housing Finance has invited bids to sell a loan book worth approximately 3,000 crore, which includes 7-8 large accounts. Last week, Alvarez and Marsal, which is advising the mortgage lender, shortlisted four to five fund houses for the portfolio sale. Sicom, the government-owned term lending institution, invited bids on April 5 to sell 48 accounts with total debts of 9,724.5 crore. On April 17, Sidbi invited expressions of interest for the portfolio, which consists of five loan pools. On May 25, the lenders have proposed an e-auction. If the anchor bidder's offer is accepted, these lenders have proposed a Swiss challenge auction. Last year, Yes Bank sold almost ₹48,000 crore to JC Flowers Asset Reconstruction Company, while Bandhan Bank sold ₹13,800 crore in two tranches to Kotak Mahindra Bank-backed Phoenix ARC. L&T Finance sold ₹2,707 crore of accounts to Avenue Capital-backed Asset Reconstruction Company of India. Also Read Patcher: A software tool for updating infrastructure as a code Sonu Nigam purchases two offices in Andheri, Mumbai

Next Story
Resources

KPIL Bags New Orders of Rs 10.11 Billion

Kalpataru Projects International Limited (KPIL), along with its international subsidiaries have secured new orders/notification of awards of Rs 10.11 billion (bn). The company has received news order in the Transmission & Distribution (T&D) business in overseas market, in the Railway business in India and in the Buildings & Factories (B&F) business in India Manish Mohnot, MD & CEO, KPIL, said, “We are pleased with the strong momentum in order inflows, which has significantly strengthened our order book, with YTD inflows now exceeding Rs 173 bn. Notably, 85 per cent of t..

Next Story
Building Material

Antica Ceramica’s Tile Collection Blends Luxury and Practicality

Antica Ceramica, a leader in innovative tile design, has recently launched a new marble-look tile collection that combines the elegance of natural marble with the durability and ease of maintenance of porcelain tiles. This collection is set to transform spaces in residential, commercial, and hospitality settings, offering architects, interior designers, and homeowners the ideal solution for creating sophisticated, timeless interiors with minimal upkeep.One of the key advantages of marble-look tiles is their resistance to common issues associated with natural marble. These tiles are highly resi..

Next Story
Infrastructure Transport

IndiGo and AAI Launch Zero-Waste Airport Project at Indore

IndiGo, through its CSR arm IndiGoReach, has partnered with the Airports Authority of India (AAI) and the AAS Foundation, Indore, to roll out the Zero-Waste Airport Project at Indore Airport. The initiative focuses on the 4R strategy—Reduce, Reuse, Recycle, and Recover—to minimise environmental impact and set a benchmark in sustainable waste management for the aviation industry. The project processes 750 kg of daily airport waste on-site, reducing reliance on traditional disposal methods. A Material Recovery Facility (MRF) segregates dry waste into 10 categories for recycling, while a Wet..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000