In a significant move, IDBI Bank has announced its intention to sell bad loans valued at ₹8,843 crore ($1.19 billion), which includes a dozen cases such as VOVL, JAL, and Wind World. This represents one of the largest such offers in recent times, reflecting the bank's strategy to manage its non-performing assets.
VOVL, a part of the debt-laden Videocon Industries, holds the largest loan due to IDBI at ₹4,584 crore ($618 million). In addition to this, JAL owes the bank ₹1,836 crore ($247 million) while Wind World has the third largest outstanding loan amounting to ₹748 crore ($100.8 million).
VOVL's total debt stands at ₹30,640 crore ($4.13 billion). However, an offer for its Brazilian subsidiary by a BPCL subsidiary is currently pending approval from the National Company Law Tribunal (NCLT). The offer value is less than 10% of the total amount due.
The final sale of these bad loans will be influenced by incoming offers. An insider revealed that the bank might consider an assignment of debt as a recovery strategy depending on the nature and value of these offers.
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