Indian Bank may sell Rs 900-cr bad loans to ARC

State-owned Indian Bank plans to sell assets worth Rs 900 crore to an asset reconstruction company (ARC). The bank said it would soon call for an expression of interest (EoI).

According to Chairman and Managing Director T M Bhasin “We plan to sell assets, mainly below Rs 10 lakh, to an ARC. The estimated value is around Rs 900 crore. These include non-performing assets (NPAs) and technically written-off assets which are taking long time.” The NPAs of the bank were among the lowest at 0.71 per cent, he added.

The bank plans to increase its credit portfolio by Rs 16,000 crore during 2010-11. The bank’s loan book, as on March 31, was at Rs 62,500 crore.