IDFC Bank gains after lender sells 9 stressed loan portfolios for Rs 5K cr

NEW DELHI: Shares of IDFC Bank were rangebound with a positive bias in Tuesday’s trade after ET reported that the lender has sold nine stressed loan portfolios to Edelweiss Asset Reconstruction Company for about Rs 5,000 crore in the largest such transaction this financial year.

The move is expected to pave the way for other lenders struggling to get rid of thousands of crores of bad loans.

Following the announcement, the stock rose 0.98 per cent to hit a high of Rs 61.30 on BSE.

The portfolios sold include Ruchi Soya, Essar (linked to Hazira port debt) and Lanco loans, people familiar with the matter told ET.

“The loan portfolio totalled Rs 5,000 crore. This was a portfolio sale bundled together with some dud loans, which have no hope in recovery,” said an executive with direct knowledge of the deal. “A chunk of the loans is from Essar and Lanco and the recovery process will start only next fiscal.”