Utkarsh SFB transfers stressed loan portfolio worth Rs 727 Cr to ARCs

UTKARSHBNK · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close

+4.0%1-day move

₹14.32

prior close

₹14.29

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AI summary

Utkarsh SFB has transferred its stressed loan portfolio (NPAs and written-off accounts) to Asset Reconstruction Companies via the Swiss Challenge Method. Three pools sold: (1) unsecured MFI loans of 1.67 lakh accounts, principal Rs 507.42 Cr, sold for Rs 79.92 Cr to Prasaditya ARC; (2) unsecured MFI loans of 47,168 accounts, principal Rs 143.11 Cr, sold for Rs 20.04 Cr to ARCIL; (3) secured CV and CE loans of 288 accounts, principal Rs 76.29 Cr, sold for Rs 49.59 Cr to ARCIL. Total principal of Rs 726.82 Cr sold for Rs 149.55 Cr.

Likely market impact

Cleans up balance sheet by removing stressed assets, but haircuts of about 80 percent on MFI loans signal weak asset quality.