Canara Bank Seeks Bidders for ₹577 Crore Supreme Housing Debt Portfolio

Canara Bank has initiated steps to recover dues from Supreme Housing and Hospitality by exploring asset sale and legal remedies. The move comes after earlier settlement efforts failed to deliver results, according to the Economic Times report.  

Insolvency Action & Failed Settlement 

The bank has approached the Mumbai bench of the NCLT to revive insolvency proceedings against Supreme Housing and Hospitality after the company did not honour a one-time settlement (OTS) proposal made in July. 

This is the second instance where insolvency proceedings were withdrawn following settlement promises, with a similar development occurring in November 2022. Supreme Housing, based in Mumbai, is primarily engaged in residential real estate projects across Mumbai and Pune. 

Debt Sale Plan & Auction Details 

Canara Bank, the lead lender to Supreme Housing with outstanding dues of ₹577 crore, has invited bids from financial institutions and asset reconstruction companies to sell the stressed loan through a Swiss challenge route. The reserve price for the debt has been set at ₹500 crore. 

As per the auction process outlined by the bank, initial bids are to be submitted by February 21, after which an anchor bidder will be declared on February 25. A subsequent electronic auction is scheduled for March 13 to invite competing offers. 

Read More: Q3 FY26 Profits for Public Sector Banks Hit ₹52,603 Crore, Marking 18% Growth; SBI, IOB and Others in Focus! 

Canara Bank Share Price Performance  

As of February 12, 2026, at 10:12 AM, Canara Bank share price is trading at ₹144.35 per share, reflecting a decline of 0.80% from the previous closing price. Over the past month, the stock has declined by 3.78%.  

Conclusion  

The lender is pursuing parallel recovery routes, testing investor appetite through a Swiss challenge auction while reviving insolvency proceedings at NCLT. After repeated settlement failures, the approach aims to maximise recovery and speed up resolution of the stressed real estate exposure, with clear timelines for bids and e-auction. 

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