IndusInd Bank sells MFI retail loan pool worth ₹1,573 crore on cash basis

IndusInd Bank has announced the sale of its microfinance institution (MFI) retail loan pool with an outstanding value of ₹1,573 crore, comprising 10,61,440 microfinance retail loan accounts. The bank offers the entire pool on a 100% cash basis to optimize its balance sheet and improve liquidity.

“Indusind Bank Ltd (IBL) invites all eligible buyers to sell on “100% cash basis” through public auction on “as is, where is”, “as is, what is” and “whatever is” basis “ one of the RBI guidelines on transfer of non-performing loans dated September 24, 2021. The sale will be conducted through a public auction. Bids from interested bidders must be above the minimum price listed below. (As of November 30, 2024),” the lender said in a stock exchange filing.

Interested bidders are required to place their bids above the reserve price of ₹85 crore. An advance payment (EMD) of 5% of the reserve price must be submitted along with the Expression of Interest (EOI), which can be made via Demand Draft (DD), RTGS or NEFT.

Interested parties must submit their EOI in writing by email by December 30, 2024, 11 a.m. at the latest. The bank has provided the following account details for the EMD:

• Account Name: INDUSIND BANK LIMITED
• Account number: 00013564604005
• IFSC code: INDB0000001
• Bank Name: INDUSIND BANK LIMITED
• Branch: Opera House, Mumbai

The sale is part of the lender’s ongoing efforts to streamline its balance sheet and manage its stressed asset portfolio. For more details and the complete bid submission procedure, please refer to the official announcement.

#JustIn | @MyIndusIndBank sets #MFI Retail loan pool with outstanding ₹1,573 crore for sale on 100% cash basis pic.twitter.com/BOuc6SdhXD

— CNBC-TV18 (@CNBCTV18Live) December 26, 2024

Shares of IndusInd Bank were trading at ₹931.5 on Thursday, down nearly 4% on the NSE. Over the last year, the stock has corrected more than 40%.