Mumbai, Dec 21 (SocialNews.XYZ) Bandhan Bank on Thursday said it will sell its stressed housing finance portfolio to an asset reconstruction company in order to reduce the bad loans on its books.
The bank informed the stock exchanges that its board of directors has approved the transfer of Rs 775.72 crore in home loans, overdue by more than 180 days, to an asset reconstruction company (ARCs).
The bank will recover 36 per cent of this amount which works out to Rs 280.39 crore in hard cash as part of the sale.
Bandhan Bank had a gross non-performing assets (NPA) ratio of 7.32 per cent at the end of the July-September quarter this year.
The sale of its stressed assets will enable the bank to reduce the level of bad loans on its books and consequently it will have to set aside less money against the bad loans which can then be given out to earn interest instead.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz