MUMBAI : Public sector lender Union Bank of India said it is looking to sell bad loans of over ₹1,200 crore to asset reconstruction companies (ARCs), banks, non-banks and other financial institutions. The bad assets include loans to GVK Power Goindwal Sahib Ltd ( ₹443.84 crore), Chennai Elevated Tollways Ltd ( ₹192.24 crore), Rajahmundry Godavari Bridge Ltd ( ₹153.03 crore), Sona Alloys Pvt Ltd ( ₹135.58 crore) and Supreme Manor Wada Bhiwandi Tollways Ltd ( ₹113.95 crore). The bank’s gross NPA ratio, or bad loans as a percentage of total advances, stood at 15.24% in Q2 FY20, down 50 basis points (bps) from the corresponding period of last year. Union Bank is looking to clean up its balance sheet before the merger with Andhra Bank and Corporation Bank. Allahabad Bank too will sell bad loans worth ₹922 crore before its merger with Indian Bank Ltd, Mint reported on 4 December.

Source: Mint January 01, 2020 17:26 UTC