IOB invites bids for Rs 457-crore MSME loans

Mumbai: Indian Overseas Bank (IOB) has announced the sale of a portfolio of micro, small, and medium enterprises (MSME) loans of ₹457 crore across 91 different accounts. The bank expects a recovery rate of 60% from this sale, which includes a cash portion and security receipts (SR).

The bank has called for bids on a cash and SR basis, asking bidders to work on a structure involving at least a 50% cash component and a 50% SR component.

The bank will give preference to bids offering a higher cash portion. The recovery involves a cash portion of ₹137 crore and an equal sum in SRs, taking the total recovery to ₹274.4 crore, which is 60% of the book's outstanding amount, according to a bid document.