IDBI Bank Limited (NSEI:IDBI)'s Stressed Assets Stabilisation Fund (SASF), which was looking to recover 11.59% from the sale of non-performing loans worth INR 61.51 billion, has hit a roadblock. Despite receiving 18 expressions of interest from asset reconstruction companies (ARCs) in the initial bidding round, the final round failed to secure any confirmed bids. Following the lack of interest, the reserve price for the auction has been reduced to INR 6.42 billion.

The lender has launched another process on July 12. The deadline for submitting EOIs is July 16. The sale will be 100% cash-based, with EY running the process as the advisor."After the last round did not get binding bids, SASF has reduced the recovery expectation to 10%," said a source.

"Although a couple of ARCs were seriously looking at the accounts, it is not clear how many will come forward with a confirmed bid this time."In the initial round, large asset reconstruction companies including Arcil, JC Flowers ARC, JM Financial ARC, ACRE, Kotak-backed Phoenix ARC, UV ARC, Prudent ARC, Omkara ARC, and CFM ARC had shown interest. Later Edelweiss requested the removal of its name from the list. The portfolio up for assignment and sale includes 239 cases, with 81 backed by tangible securities and guarantees, having a gross principal outstanding of INR 21.7951 billion.

The remaining 158 cases are supported by guarantees and claims, with an outstanding debt of INR 39.7165 billion.