Bandhan Bank Limited (NSEI:BANDHANBNK) is in the process of selling its affordable home loan portfolio of INR 7,750 million to Avenue Capital-backed Asset Reconstruction Company (India) Limited (Arcil) for INR 2,800 million in the part of an all-cash transaction, people with knowledge of the deal said. The transaction highlights emerging tensions among low-income groups, where customers are unable to repay loans of 1 to 1.2 million Indian rupees taken out to purchase their homes. Arcil won the Bandhan Bank portfolio in an uncontested Swiss auction held on December 27.
For the bank, the sale of the portfolio equates to a 36% recovery. Arcil and Bandhan Bank did not respond to the ET’s request for comment.
2023-12-28 11:12:00
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