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Bank of India to sell 24B rupees of bad loans

Bank of India invited bids for bad loans worth more than 24 billion rupees, The Economic Times reported Feb. 7.

The loans were granted to 25 entities, including Jai Balaji, Jyoti Power, Privilege Power and Vandana Vidhyut.

The bank will conduct bidding for 2.50 billion rupees worth of loans issued to Privilege Power and Infrastructure on Feb. 22 through the Swiss challenge method, according to the report. The Swiss challenge method is a process when a public authority, which has received an unsolicited bid for a project, releases details of the bid and invites third parties to match or exceed it.

The remaining 24 accounts will be offered through the e-auction route on Feb. 26 and the bank will negotiate only with the highest bidder.

The move comes after the country's central bank placed Bank of India under a prompt corrective action in December 2017 partly due to the lender's high net nonperforming assets.

As of Feb. 6, US$1 was equivalent to 64.26 Indian rupees.