Public sector lender Indian Overseas Bank (IOB) has announced the sale of 46 stressed accounts worth ₹11,500 crore as part of its ongoing efforts to improve asset quality. The bank has invited Expressions of Interest (EOIs) from Asset Reconstruction Companies (ARCs) and eligible transferees. The sale is to be conducted through an e-auction on January 30, 2025, under the open auction method, according to a statement.

Interested parties can bid on a portfolio basis, individual accounts or groups of accounts. The accounts include those financed under consortium arrangements, with several cases admitted under the National Company Law Tribunal (NCLT). EOIs must be submitted by January 18, 2025, and detailed information, including terms of sale, is available on the bank’s website under the TENDERS section in the ARC-Cell.

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This move is part of IOB’s broader recovery plan to address Non-Performing Assets (NPAs). The bank has made significant progress in improving its asset quality, reducing its gross NPA ratio from 11.69 per cent as of March 31, 2021, to 2.72 per cent as of September 30, 2024. Net NPAs have also decreased significantly, from 3.58 per cent to 0.47 per cent during the same period.

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Ajay Kumar Srivastava, MD & CEO of IOB, stated that the bank is focusing on maximising value through strong recovery efforts, such as SARFAESI actions, compromise settlements, and sales to ARCs. He also noted that the sale of MSME and educational loan portfolios to ARCs is under active consideration to enhance recovery outcomes and strengthen asset quality.