KUALA LUMPUR, Sept 26 (Reuters) Malaysia's fifth-largest lender, AMMB Holdings , will sell 330 million ringgit ($96.32 million) of bad loans to investment bank Lehman Brothers , AMMB said on Wednesday.
The sale followed an earlier disposal of 110 million ringgit to GE Capital, as part of a plan to cut bad loans to 4 percent of outstanding loans, by the end of fiscal 2008 from 5.7 percent at the end of June, said Amarjeet Kaur, AMMB's director of group corporate services.
''These are all property loans, we went through an auction process with four other banks. These investment banks see the Malaysian property market on an uptrend,'' she told reporters in the Malaysian capital.
AMMB has no plans to sell any more bad loans at the moment, she said, adding that the banking group still had about 2.7 billion ringgit in loans classified as non-performing.
($1=3.426 Malaysian Ringgit) REUTERS PBB RN1614