Bad bank likely to spark global interest in India’s $300 bn distressed assets industry

Top global investors such as SSG Capital, Deutsche Bank, SC Lowy, Varde Partners and Fiera Capital are likely to raise their stakes in India’s $300-billion distressed assets industry amid prospects of quicker resolutions, after North Block on Thursday announced the formation of a bad bank dedicated to extricating stuck loans.

ET spoke with half a dozen senior executives involved in selling distressed assets about the prospects of the industry.

“The bad bank is definitely an interesting development for India’s distressed assets industry,” said Ankit Thaker, business head, SC Lowy India. “The move should attract more interest from global investors to India’s non-performing loan market. Decision-making is expected to be speedy.”

SSG Capital and Fiera Capital did not comment. Varde Partners spokesperson was not available for comments.

Finance minister Nirmala  Sitharaman announced the formation of India’s first bad bank that will have two legs — National Asset Reconstruction Company (NARCL) and India Debt Resolution Company (IDRCL).

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