Kolkata: ESAF Small Finance Financial institution has determined to promote unhealthy loans to the tune of Rs 1700 crore to asset reconstruction firms in an effort to scrub the stability sheet.
The unhealthy mortgage pool recognized for the sale consists of accounts which might be technically written off, the financial institution stated in a regulatory submitting to inventory exchanges.
The financial institution stated it carries a 94% provision towards the pool.
ESAF had gross non-performing loans of Rs 1635 crore on the finish of September with the ratio being at 8.5%. Internet NPA stood at Rs 696 crore which was 3.8% of the advances. As a result of asset high quality stress and excessive credit score price, the financial institution suffered internet losses for the 5 quarters in a row.
The financial institution’s gross advances stood at Rs 19,137 crore on the finish of September.
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