IDBI Bank's CEO says the lender can recover $2.4 billion in bad loans

India is considering selling at least 51% of the $5 billion bank, people familiar with the matter have said

IDBI Bank Ltd.’s chief executive officer said the lender is likely to recoup 195 billion rupees ($2.4 billion) on soured debt in his pitch to potential buyers amid India’s planned auction of the firm.

“We are sitting on about 780 billion rupees of fully provided for bad loans, including written-off loans, and around 25 per cent is likely to be recovered,” Rakesh Sharma said in an interview in Mumbai. “This hidden asset is not reflected in our current valuation and will directly boost the bottom line.”

India is considering selling at least 51 per cent of the $5