Federal Bank sells Essar Steel's debt to Edelweiss: Report

Federal Bank, a Kerala-based private sector bank has reportedly sold its loans given to Essar Steel worth Rs 70 crore to Edelweiss Asset Reconstruction Company (ARC). The sale took place in December. In Q3 FY16, the Bank sold three bad loans of Rs 225 crore. The bank’s gross NPA as a percentage to gross Advances stood at 3.15% and Net NPA as a percentage to Net Advances at 1.66%. Federal Bank is the second bank to sell Essar Steel loans to an ARC after HDFC Bank offloaded loans of Rs 550 crore last year.

Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India.