PNB Housing Finance, others in push to offload bad loans

18 Apr 2023 CW Team

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

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..