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HomeMarket NewsESAF Small Finance Bank to sell ₹735-crore bad loan pool to ARC, board approves deal
The loan pool comprises ₹362.43 crore in NPAs and ₹372.75 crore in technically written-off accounts. The bank said it holds provisions covering 90.15% of the total pool. Shares of ESAF Small Finance Bank Limited ended at ₹31, up by ₹0.070, or 0.23%, on the BSE.
Thrissur-based ESAF Small Finance Bank Limited on Wednesday (June 18) said its board of directors has approved the sale of a pool of non-performing and technically written-off loans worth ₹735.18 crore to an asset reconstruction company (ARC).
The loan pool comprises ₹362.43 crore in NPAs and ₹372.75 crore in technically written-off accounts. The bank said it holds provisions covering 90.15% of the total pool.
The board has authorised the Asset Sale Committee of Executives to carry out the necessary procedures to complete the transaction. The name of the ARC and the terms of the sale were not disclosed.
This week, Maruti Suzuki India said it has partnered with ESAF Small Finance Bank to offer retail financing solutions for new cars, used cars, and commercial vehicles.
The two partners have signed a memorandum of understanding for the purpose, which will focus on offering easy and flexible finance options tailored especially for first-time buyers, the company said in a statement.
The partnership will leverage the combined network of Maruti Suzuki and ESAF SFB across tier-II and tier-III cities to make vehicle ownership more accessible and convenient for a wider segment of customers, it added.
Shares of ESAF Small Finance Bank Limited ended at ₹31, up by ₹0.070, or 0.23%, on the BSE.
(Edited by : Shoma Bhattacharjee)
