Deutsche Bank, Arcil acquire all SRs of non-performing loans

By Staff
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Google Oneindia News

Mumbai, Feb 23 (UNI) German financial powerhouse Deutsche Bank and Asset Reconstruction Company (India) (Arcil) have acquired cent per cent security receipts (SRs) of non-performing loans (NPLs) with a face value of Rs 75 crore.

The first-of-its kind of transaction, initiated and facilitated ' by Arcil, the first asset reconstruction company in the country to be licensed by the Reserve Bank of India, had attracted bids from both domestic and international distressed debt investors.

With this acquisition, the selling bank has got complete exit from the portfolio, a press release issued here today said.

Deutsche Bank Managing Director and CEO Gunit Chadha said, ''This is a historic transaction for the financial markets in India and it paves way for the development of the NPL market in this country which would significantly assist in restructuring and strengthening the local banking sector.'' Financial circles expect this transaction would lead to more of such transactions in the future and help in the creation of a secondary market for SRs.

Arcil MD and CEO Rajendra Kakker said the transaction will encourage a larger number of serious players to invest in Indian distressed debts and assets.

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