NPA woes: IOB sells Rs 1,600 cr exposure in Essar Steel to Edelweiss ARC

The bank is looking at all options, including selling the assets and the NCLT route for reducing the NPA burden

Seeking to reduce its non-performing assets, Indian Overseas Bank (IOB) has sold over Rs 1,600 crore exposure in Essar Steel to Edelweiss ARC.

The bank had two options — wait for the National Company Law Tribunal (NCLT) decision on the matter or to sell it to ARC — and it has taken a calculated decision, said bank's officials.

The bank has lent the amount as part of a consortium and the matter is currently under NCLT's consideration. IOB had earlier appointed a team of officials to look at such loans and find out the best way to recover from it.