The Hindu Business Line : Deutsche Bank buys NPA receipts

Deutsche Bank has acquired 100 per cent of security receipts with respect to a portfolio of non-performing loans of Rs 75 crore from Asset Reconstruction Company (ARCIL).

This is the first of its kind in India where the selling bank has got complete exit from the portfolio.

The transaction had attracted bids from both domestic and international distressed debt investors.

Mr Rajendra Kakker, Managing Director and CEO of ARCIL, said: "This transaction is path-breaking because for the first time there is an independent buyer of security receipts. Usually, banks and financial institutions that are the sellers are themselves the security receipts holders. They are not happy with this as they don't get cash."

This transaction would help to create a secondary market for security receipts, he added.

Mr Gunit Chadha, MD and CEO of Deutsche Bank in India, said that this would help in restructuring and strengthening the local banking sector.

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