JC Flowers: JC Flowers prone to get Saraswat Financial institution’s Rs 228-cr harassed loans, no different bidder

Mumbai: JC Flowers ARC is ready to take over ₹228 crore retail and SME accounts from Saraswat Cooperative Financial institution as no competing bids have been obtained for the asset aggregator‘s ₹37 crore provide on the finish of enterprise on Monday, the final day for competing bids, folks aware of the small print mentioned.

The 110 accounts the financial institution had put up on the market within the first week of January embrace SME accounts and a few dwelling loans from particular person debtors. JC Flowers’ provide envisages an 84% haircut for the Mumbai-based cooperative financial institution.

“That is an all-cash provide from JC Flowers which provides the corporate a possibility to get well dues from these small accounts. It’s a good balancing act for JC Flowers which has giant chunky mortgage accounts acquired from Sure Financial institution in its portfolio proper now. The brand new accounts are largely secured and have property backing them, making restoration attainable,” mentioned an individual conscious of the small print.

JC Flowers ARC declined to remark whereas course of advisor BoB Capital Markets didn’t reply to an e-mail in search of remark till press time on Monday.

In December 2022, JC Flowers accomplished the acquisition of NPAs from Sure Financial institution totalling ₹48,000 crore with a bid of ₹11,183 crore, underneath a 15:85 construction (15% money and 85% safety receipts). Sure Financial institution owns a 9.90% stake within the ARC.