Indian Overseas Bank has reportedly offloaded its bad debt exposure worth Rs 1,500 crore in Essar Steel to Edelweiss Asset Reconstruction Company (ARC). The company has sold the same at a 50 per cent discount to its book value.
The deal comes even as the National Company Law Tribunal declared Essar Steel insolvent and appointed an insolvent professional to manage the company. Fearing a huge hair-cut, banks are selling their bad loans to asset reconstruction companies at big discounts.
Indian Overseas Bank is a pioneer in many fields - Banking, Insurance and Industry with the twin objectives of specialising in foreign exchange business and overseas banking.
