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Other Deals

Phoenix ARC buys loans of Rs.8,000-Cr from Bandhan, ESAF SFB, Equitas for Rs.1,500-Cr

Economic Times  

Kotak Bank-sponsored Phoenix Asset Reconstruction Company has bought unsecured retail loans worth up to INR 8,000 crore from Bandhan Bank, ESAF Small Finance Bank, and Equitas for around INR 1,500 crore. These deals equate to a 15-20% recovery for the lenders. Phoenix ARC bought two loan portfolios from Bandhan Bank worth over INR 4,900 crore for INR 740 crore, equating to a recovery of 15%. Phoenix gave a binding bid of INR 369.20 crore for the written-off portfolio and INR 370.62 crore for the NPA portfolio. Similarly, Phoenix bought unsecured loans worth INR 581 crore from Equitas at the reserve price of INR 81 crore. It also bought unsecured bad loans worth INR 1,075 crore from ESAF Small Finance Bank for INR 204 crore, equating to a 19% recovery for the lender. All deals were done under the 15:85 structure and followed the senior-junior structure.