Indian Overseas Bank (NSEI:IOB) has put a INR 4,570 million portfolio of non-performing assets (NPAs) from micro, small and medium enterprises (MSMEs) on sale. The bank expects a minimum of 60% recovery with half of
it in cash, documents accessed by ET showed. In a notification on its website, the bank said the portfolio includes 91 MSME loan accounts with outstanding of between INR 30 million and INR 100 million. The bank has set a INR 2,740 million reserve price which is 60% of the total outstanding, of which it expects at least half, or INR 1,370 million, in cash. "Preference will be given to bids or offers with a higher cash portion.management fee would be 1.5% per annum of net assets value. for first three years, 1.25% for the fourth, fifth and 0.75% for the sixth year onwards," the bank said inviting bids from asset reconstruction companies, banks and alternative investment funds. Bids will commence on November 28 through e-auction, the bank said".