Financial Daily from THE HINDU group of publications
Friday, Dec 23, 2005
Financial Daily from THE HINDU group of publications Friday, Dec 23, 2005 |
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Non-Performing Assets Money & Banking - Foreign Banks StanChart acquires Rs 1,300-cr NPAs from ICICI Bank Our Bureau
Mumbai , Dec. 22 STANDARD Chartered Bank announced on Thursday that it has acquired bad loans to the tune of Rs 1,300 crore from ICICI Bank. The acquisition of this non-performing loan portfolio, carried out by Standard Chartered Bank's Alternate Investment Group, is one of the largest distressed asset transactions ever carried out in India. It is also the biggest for Standard Chartered Bank, a spokesperson for the bank said. The acquired portfolio comprises 310 borrowers spread across India. The borrowers include operating companies facing cash flow difficulties and those that are in various stages of liquidation. Underlying collateral for these loans typically includes one or more of real estate, plant and machinery, stock and receivables, personal and corporate guarantees. Standard Chartered Bank emerged as the successful bidder at the end of a controlled auction by ICICI Bank last week. "The sale was preceded by a due diligence exercise, which was carried out over a period of eight weeks. This due diligence was based on a secured Internet-based data room access provided to potential investors to view pertinent documents," Standard Chartered said in a news release. This acquisition is very strategic for Standard Chartered's business and has enhanced the bank's position as a leading hi-yield investor in Asia, Africa and West Asia. "We also believe resolution of non-performing loans in India are moving in a positive direction as a result of the Government's efforts to continue reform in the regulations over the past few years," the release said quoting Mr Paul Jurie, Global Head, Alternate Investment Group, Standard Chartered Bank.
Related Stories: More Stories on : Non-Performing Assets | Foreign Banks
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