is seeking buyers for its ₹3.6 billion rupees portfolio of distressed loans, including advances made to sister companies of the Srei Group currently in administration, two people familiar with the development told ET.

The bank has shared a list of 65 such accounts with asset reconstruction companies (ARCs), seeking initial interest from them.

The lender has asked the ARCs to submit an expression of interest with an indicative price of the loan accounts they would like to purchase, one of the people quoted above said.

Officials from the Bank of India declined to comment.

Outstanding loan from Bank of India to Srei Equipment Finance Ltd is Rs 650 crore already

is ₹377 crore, according to a note distributed by the bank.

These are among the two largest accounts on the list of 65 defaulters or stuck advances. Srei’s administrator extended the deadline for accepting resolution plans by a month to July 30 following a request from potential bidders, given the complexities involved in the due diligence process, ET previously reported.

The list also includes Rs 535 crore in loans given to McNally Bharat Engineering Co Ltd, Rs 202 crore to Vandana Vidyut Ltd and Rs 183 crore to

Infrastructure. The other major loan accounts on the list are those of MBL Infrastructure, Steel and Power, Visa Power and Crane Ltd.

Bank of India aims to clean up its books to improve its valuations and attract capital, another person familiar with the development said.

In May,

(), also circulated a list of 168 distressed loan portfolios totaling outstanding loans of ₹31,363 crore. Almost a third of the portfolio comprised loans to the electricity sector.

After provisions, BoI’s net non-performing assets (NPA) stood at 2.34% of advances, totaling Rs 9,851 crore, for FY22. In the same period, the average net NPA for PSU banks it is 1.55%, showed a presentation made by the banks to the Ministry of Finance. The bank’s gross non-performing loans stood at 10% versus an industry average of 5.9% for FY22.

According to the RBI Financial Stability Report, gross NPA of registered commercial banks fell to a six-year low of 5.9% in March 2022 and could fall to 5.3% in March 2023.