Public sector lender Oriental Bank of Commerce (OBC) is set to sell 59 accounts of small, medium and some large companies which are currently non-performing assets (NPAs) with principal dues of over Rs 1,000 crore, said a media report.
The bank is expecting to complete the sale by September and the move is a part of its strategy to spruce up its balance sheet.
Banks, especially public sector lenders, have been reeling under rising bad loans mainly due to slowdown, high interest rates and a stretched payment cycle.
OBC's NPAs rose to Rs 4,183 crore at the end of March 2013 from Rs 3,580 crore at the end of March 2012. Besides, selling NPAs, OBC has also stepped up efforts to recover dues and registered Cash Recovery of Rs 1,525.77 crore during 2012-13.