Fedbank Financial sells delinquent asset pool to ISARC for ₹32.57 crore

Fedbank Financial Services Limited announced on September 26, 2025, the sale of a deep delinquent pool of gross non-performing assets (GNPA) totaling ₹79.45 crore to India SME Asset Reconstruction Company Limited (ISARC). The transaction involved an upfront cash payment of ₹32.57 crore, representing approximately 41% of the principal outstanding value of the sold assets.

The GNPA pool comprised small-ticket loan against property (LAP) with a principal outstanding value of ₹55.60 crore, including ₹26.86 crore that were technically written off. Additionally, affordable home loans contributed ₹23.84 crore in principal outstanding, with ₹14.22 crore of this technically written off.

As of August 31, 2025, the net carrying outstanding principal value of the sold pool, after ECL provisions, stood at ₹22.20 crore. The net carrying value of the interest for this pool, also after ECL provisions, was ₹5.13 crore on the same date, which will be written off in the quarter ending September 30, 2025.