- US-based Avenue Capital-backed Asset Reconstruction Company (India) (ARCIL) has bought nearly ¹400 crore worth of bad loans or non-performing assets (NPAs) of Saraswat Bank with a haircut of nearly 86%.
- Saraswat Bank, one of the largest cooperative banks in the country, sold the NPA portfolio comprising retail and micro, small and medium enterprises (MSME) loans as a clean-up for future growth capital.
- The bank has concluded the sale of the NPA portfolio it had announced in the previous quarter.
- Initially planning to sell assets amounting to ¹410 crore, Saraswat Bank later reduced the pool to ¹385 crore, seeking bids on a 100% upfront cash basis as it wanted to clean up its loan book for future growth.
- BOB Capital Markets was the process advisor.
US-based Avenue Capital-backed Asset Reconstruction Company (India) (ARCIL) has bought nearly ¹400 crore worth of bad loans or non-performing assets (NPAs) of Saraswat Bank with a haircut of nearly 86%.
Saraswat Bank, one of the largest cooperative banks in the country, sold the NPA portfolio comprising retail and micro, small and medium enterprises (MSME) loans as a clean-up for future growth capital. The bank has concluded the sale of the NPA portfolio it had announced in the previous quarter.
Initially planning to sell assets amounting to ¹410 crore, Saraswat Bank later reduced the pool to ¹385 crore, seeking bids on a 100% upfront cash basis as it wanted to clean up its loan book for future growth. BOB Capital Markets was the process advisor.
“Saraswat Bank has been able to recover a decent 14% of the debt by selling the debt mainly because it belonged to legacy NPAs and some retail and MSME loans,” said a person close to the development, who did not wish to be identified.
Spokespersons of Saraswat Banks, ARCIL and BOB Capital Markets did not immediately respond to requests for comment.