IDBI Bank Ltd shares would be in focus on Thursday morning amid a media report that suggested that the lender has put bad loans worth Rs 8,843 crore on the block in one of the biggest such offering by an individual bank. A report by The Economic Times suggested that the assets for sales are among a dozen cases such as Wind World, Jaiprakash Associates (JAL) and Videocon Oil Ventures (VOVL), which were facing delays in resolution process.
The biggest among them is the oil and gas exploration company VOVL. This debt-ridden Videocon Industries' company has Rs 4,584 crore in total dues to IDBI Bank. Other key borrowers included Jaiprakash Associates Ltd with dues of Rs 1,836 crore. Wind World has outstanding of Rs 748 crore, ET suggested.
IDBI Bank shares are down 15 per cent in the last one month. IDBI Bank recently reported its September quarter results, where it logged 59.8 per cent year-on-year (YoY) rise in net profit at Rs 1,323.3 crore compared with a profit of Rs 828.1 crore in the corresponding quarter last year. The bank said its net interest income jumped 12 per cent to Rs 3,066.5 crore from Rs 2,738.1 crore and gross non-performing assets (NPA) ratio improved to 4.9 percent from 5.05 per cent reported in the June 2023 quarter.
The ET report suggested that VOVL owes lenders a total of Rs 30,640 crore but a offer for its Brazilian subsidiary by a BPCL subsidiary, pending NCLT approval, is only worth Rs 240 crore, which is less than 10 per cent of the total due to lenders. "All these loans have been stuck pending recovery for some time so the bank thinks it is better to see if there is some value through an assignment of debt. But this is just the first step and a final sale depends on what offers come and from whom," ET quoting a person familiar with the bank's plans said.
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