IndusInd Bank has put its unsecured microfinance loans worth Rs 1,573 up for sale. 

The private lender has invited public bids at a reserve price of Rs 85 crore, indicating that the minimum recovery rate would be 5.04%. 

The bids will have to be on a 100% cash basis. “IndusInd Bank Ltd invites bids from all eligible purchasers for sale on 100% cash basis under public auction,” the lender said.

There is no collateral backing these loan accounts of more than 10.61 lakh borrowers.

Asset reconstruction companies (ARCs) are expected to bid for the stressed loans.