Public sector lenders Union Bank of India, Corporation Bank and Bank of Maharashtra are planning to sell stressed loans aggregating to ₹2,700 crore to asset reconstruction companies (ARCs).
Union Bank has put stressed assets of about ₹1,200 crore on the block and is awaiting the right valuations to be able to sell these to ARCs, said the bank’s CMD Arun Tiwari.
Corporation Bank will sell ₹1,000 crore of stressed loans to ARCs by the end of this quarter. Speaking to the media on the sidelines of the FIBAC conference here, SR Bansal, CMD, Corporation Bank, said his bank will continue to sell stressed assets in successive quarters.
Corporation Bank’s gross bad loans stood at ₹7,765 crore for quarter ending June 2015 against ₹5,470 crore a year ago,” he said.
Bank of Maharashtra too is planning to sell ₹500 crore of stressed assets to ARCs.