More than 29 asset reconstruction companies have been set up after 2002.
Bloomberg reports that Deutsche Bank AG is said to be setting up a subsidiary in India that will buy and reorganise soured debt in a country with one of the world’s worst non-performing loan ratios.
Current Indian rules restrict overseas investors from buying bad loans directly from Indian lenders.
More than 29 asset reconstruction companies have been set up in the country with Bank of America also considering a similar set-up after a law was passed in 2002 that helps banks dispose bad loans through sales.
In 2016, Prime Minister Narendra Modi reformed rules that will allow foreign investors to fully own ARCs instead of just tying up with local units.
Here’s more from Bloomberg:
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