Textile — ₹4.2 Cr at Indian Bank ARMB, Chennai
Erode textile SME, ₹4.2 Cr doubtful. ARMB cleared OTS at ₹1.95 Cr (53.6%) with 15% on sanction and 4 tranches over 6 months.
Indian Bank · ARMB
Indian Bank MSME Loan Settlement
Post-amalgamation with Allahabad Bank, Indian Bank routes MSME NPAs through Asset Recovery Management Branches at zonal level, with Chief Manager (ARMB) as effective approver.
- Chief Manager (ARMB) is the primary approver on most MSME cases
- Legacy Allahabad Bank files route through Indian Bank ARMBs
- Strong presence across South and East India
Indian Bank, post-amalgamation with Allahabad Bank, has a substantial MSME portfolio with strong presence across South and East India. Settlements route through Asset Recovery Management Branches (ARMBs) at zonal level.
The Chief Manager (ARMB) is the effective approving authority for most MSME cases. Larger exposures escalate to AGM / DGM at Zonal / Head Office. Legacy Allahabad Bank accounts now route through Indian Bank ARMBs — the first step for legacy borrowers is confirming current mapping.
Indian Bank rolls out periodic Special OTS schemes for MSME segments with standardised waivers, typically at quarter-end and year-end.
Free Assessment
30-minute confidential case review
A senior consultant reviews your outstanding, NPA stage and options — no obligation, no cost. All conversations are covered by NDA.
- • Waiver band estimate for your case
- • Best-fit authority / branch to file at
- • Risk of SARFAESI / auction escalation
- • Documentation checklist
Indian Bank OTS Policy — What Actually Governs Your Case
Indian Bank works from a Board-approved Compromise Policy with a defined matrix. ARMB is the case owner; scheme circulars announce time-bound schemes with standardised waivers.
- Board-approved Compromise Settlement Policy with RVS floor
- Structured waiver matrix per NPA vintage
- Periodic Special OTS schemes for MSME segments
- Down-payment 10–25% with 3–12 month balance window
Indian Bank Observed Waiver Bands by NPA Stage
| NPA Stage / Route | Observed Indian Bank Waiver Band | Down-Payment | Balance Window |
|---|---|---|---|
| Sub-standard (regular) | 40–55% | 10–25% | 3–6 months |
| Doubtful (regular) | 55–70% | 10–20% | 3–9 months |
| Loss Asset (regular) | 60–80% | 10–15% | 3–12 months |
| Special OTS scheme | 55–72% | 10–20% | 60–90 days |
Indian Bank Settlement Process — Step by Step
- Step 1Confidential Assessment
Case review — outstanding, NPA stage, security cover, promoter exposure. 30-minute consultation.
- Step 2Documentation & Hardship File
3-year financials, bank statements, GST, sanction letters, hardship narrative and source-of-funds evidence.
- Step 3OTS Proposal Drafting
Structured proposal referencing RBI framework, RVS working, precedent cases and payment schedule.
- Step 4Bank Submission
Proposal filed with the right authority — SAM branch / SARB / SAG / Regional Collections Head.
- Step 5Committee Negotiation
Follow-up, counter-offers, precedent deployment and final waiver / structure negotiation.
- Step 6Sanction & Payment
OTS sanction letter, down-payment, balance tranches, and receipt reconciliation.
- Step 7No Dues & Closure
No Dues Certificate, security release, CIBIL update, guarantor discharge.
Indian Bank Recovery Approach & Escalation Ladder
Indian Bank Asset Recovery Management Branches (ARMBs) handle MSME NPA cases at zonal level. Legacy Allahabad Bank accounts route through Indian Bank ARMBs.
- Branch Manager — pre-NPA / small ticket
- Chief Manager (ARMB) — effective approving authority for most MSME cases
- AGM / DGM (Recovery), Zonal Office — larger MSME exposures
- GM, Head Office — very large or policy-band cases
SARFAESI at Indian Bank — Practical Realities
Indian Bank SARFAESI cadence follows the PSU norm — 13(2) at 90–180 days NPA. Reply drafts pointing to a parallel scheme application usually freeze escalation.
Post-13(4), auction stays are available on filed OTS proposals under ARMB / zonal review. Direct filing with the Chief Manager (ARMB) with a copy to AGM (Recovery) is the working pattern.
Eligibility
- Account classified as SMA-2, NPA sub-standard, doubtful or loss asset
- Not tagged as wilful default or fraud
- Realistic source of funds for at least the down-payment tranche
- Willingness to sign a full and final settlement with the bank
- Promoter/guarantor cooperation in documentation and negotiation
- No parallel criminal / recovery proceedings that block settlement
Standard Documentation
- • Latest sanction letter and all amendments / renewals
- • 3-year audited financials (P&L, balance sheet, notes)
- • Latest GST returns (12 months) and income-tax returns
- • Complete bank statements — 24 months across all lenders
- • CIBIL commercial and consumer reports (self and guarantors)
- • Hardship narrative — cause and consequences of stress
- • Source-of-funds evidence for OTS payment
- • Security valuation report (secured cases)
- • SARFAESI notices, DRT filings, correspondence trail
Bank-Specific Documents
- • Indian Bank sanction and NPA classification
- • Indian Bank Statement of Account (24 months)
- • Current ARMB mapping (from CBS)
- • Latest Special OTS scheme circular
- • 13(2) / 13(4) notices from Indian Bank, if issued
Indian Bank OTS — close-out window 90–180 days; scheme 60–90 days
- Week 1–2AssessmentCase diagnosis, document collection, hardship narrative drafted.
- Week 3–4Proposal FiledOTS proposal submitted to competent authority with all annexures.
- Week 5–10NegotiationCommittee cycle, counter-offers, RVS reconciliation.
- Week 11–16Sanction & PaymentSanction letter, down-payment, balance tranches.
- Week 17–20ClosureNo Dues Certificate, security release, CIBIL update.
Settlement Calculator (Indicative)
Rough waiver band based on NPA stage. Actual outcome depends on bank, RVS, DPD and negotiation.
Estimated waiver band: 55%–70%
Indicative payable: ₹15,00,000 – ₹22,50,000
OTS Eligibility Checker
Quick 4-question check. Not a formal opinion.
Needs review — some flags reduce OTS eligibility. Speak with a consultant.
Case Studies
Legacy Allahabad — ₹2.7 Cr Sub-standard
Kolkata legacy Allahabad Bank account, now Indian Bank ARMB. ₹2.7 Cr sub-standard. OTS at ₹1.3 Cr (51.9%) with 15% down and 3 tranches.
Rice Mill — ₹6.4 Cr Scheme OTS
Kadapa rice mill fitting a scheme window. ₹6.4 Cr doubtful. Sanctioned at ₹2.6 Cr (59.4%) with 20% on sanction and balance in 75 days.
Client Voices
"Filed clean OTS with the right authority. Sanctioned in 4 months at 62% waiver."
"Timely SARFAESI reply and structured OTS saved the shop unit. Closed with No Dues in 5 months."
"Post-13(4) proposal filed with SAM branch — auction stayed and settled at 68% waiver."
Frequently Asked Questions
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Reviewed by Head of Practice, Debt Resolution · Updated 2026-06-15 · v2026.2