Mumbai, July 28 -- Indian state-owned lenders are accelerating the sale of legacy bad loans to asset reconstruction companies (ARCs) ahead of the Reserve Bank of India's (RBI) tougher expected credit loss (ECL) norms.

Public sector banks accounted for Rs.50,000 crore of the nearly Rs.60,000 crore of stressed assets offered for sale in the April-June quarter, industry data compiled by the Association of ARCs in India showed. Private sector banks put up Rs.8,000 crore of bad debts for sale, with the remaining Rs.2,000 crore coming from non-banks and mortgage lenders.

This marks the first time that data on bad loans put up for sale has been compiled by lender category.

Details on how much of the Rs.60,000 crore offered for sale was eventu...