Name: SBIBrookfieldsetupJVRs7000crfundforbadloans
Brand: Varsha nationaltenders
SKU: 0446310786
Availability: InStock
Rating: 4.4 (89 reviews)

SBI, Brookfield set up JV, Rs 7,000cr fund for bad loans

by : Chauhan Varsha

Posted on - July 22, 2016 10:34:17AM

Region : National

A statement issued by SBI on Wednesday said that the country's largest bank has committed up to 5% of total investments into stressed assets. "The JV will independently evaluate and invest in various stressed assets, and will rely on Brookfield's operational expertise to manage recapitalized businesses," a joint statement said. The JV with Canada's largest alternative asset manager, at a later stage, will seek participation from other lenders.

At present, banks are dealing with bad loans by either creating an in-house division to deal with defaulters or by selling loans to asset reconstruction companies (ARCs).

ARCs have been issuing security receipts to banks in lieu of loans they purchase since they do not have funds. By creating an asset management company, SBI has addressed several issues. The AMC will lead investors into the fund and it will also bring in partners with skills to turn around troubled businesses.

SBI chairman Arundhati Bhattacharya hoped the collaboration with global players will enable banks to find an alternate solution to the stressed asset issue. According to her, this approach will be more acceptable to both lenders and borrowers in cases where promoters are unable to infuse funds and lenders are reluctant to take additional exposure.

Brookfield India head Anuj Ranjan said, "This is a great opportunity for us to continue to invest in the long-term India story, and we're pleased to be expanding our private equity platform here." Bulk of Brookfield's global assets are in property followed by power and infrastructure sector.

SBI's gross bad loans touched Rs 72,792 crore, or 5.1% of their total loans. After making provisions of Rs 7,949 crore, its net non-performing assets fell to 2.8%. The provision coverage ratio - the cushion that banks keep to protect against bad loans - is 65.2%

The bad loans are deadweight on the books of banks and they prevent them from growing their loans. One of the traditional methods used by banks to clear bad loans has been to create a "bad bank" - a fund which will acquire all the bad loans and free up the original lender.

The government has been thinking of setting up a stressed asset fund in association with banks that could provide equity or debt capital to stressed companies. The RBI has however opposed majority ownership by banks in any stressed asset funds. The Indian Banks Association had in May mooted a proposal and sought RBI's view on a bank-sponsored stressed asset fund.

Ref.: http://timesofindia.indiatimes.com/business/india-business/SBI-Brookfield-set-up-JV-Rs-7000cr-fund-for-bad-loans/articleshow/53311759.cms

Leave your comment

Please login to leave your comment.

Varsha nationaltenders

NationalTenders.com is a platform created for various business verticals across the globe to provide with the latest tender information at there finger tips on daily basis. We at NationalTenders.com aim to bring more business opportunities directly to your office desk.

NationalTenders.com is an inititaitve by Marvel Infocomm Pvt. Ltd.

Our goal is to make the tender information service accessible to the widest possible audience.

NationalTenders.com has created means for its customers to successfully transform themselves in to leading business tycoons by providing them latest business happenings and help them to keep an eagle eye on the market through its latest technology of providing tender and project information.

NationalTenders.com also provides Internet-based software solutions to enable businesses and professionals to migrate their business processes online. With current trend of e-marketing we also cater our customers by building there websites according to there needs that to at a minimum cost.

Enquiry Now

Our Events

Have you missed out on any of ..

Look beyond Section 80C: Have you missed out on any of these tax breaks? Most of us are aware of the concept of deductions from gross total income available to a taxpayer. One can claim deductions from one's gross total income by investing in avenues specified by the government. These deductions are available under different sections of the Income Tax Act, 1961. The most popular deduction is unde[..]

SBI, Brookfield set up JV, Rs ..

MUMBAI: At a time when stressed loans of commercial banks have crossed Rs 8.2 lakh crore, Canada's Brookfield Asset Management has committed Rs 7,000 crore to buy bad loans in India through a joint venture with SBI. A statement issued by SBI on Wednesday said that the country's largest bank has committed up to 5% of total investments into stressed assets. "The JV will independently eval[..]

Similar Events

Electrical work tender in Mumb..

Operation, Maintenance & Repairs Of Electrical Installations At Budp Work Shop, Fire Station, Community Centre And Nodal Office Of New Panvel Node For 3 Years. for more details Call on 079-66172085 / 86

Generator

Details for tenders of supply Generator :- Supply, Erection, Testing, Commissiong Of 600 Kva Diesel Generator Set In Sewerage Treatment Plant Of Sec-21 U/E Kaithal. (Including One Year Free Mtc./ Defect Period Free Of Cost) . Link for Documents :- http://www.nationaltenders.com/details?id=NzM4NDE3OA==

Auction For Metal Scrap

Auction For G.I. And Stay Wire Scrap-3050 Kg., Sheet Iron Scrap Recovered From Kiosk/Ocb/Control Pannel/Boxes/Mainswitch/Truck Body Etc.-5550 Kg., Iron And Steel Scrap Of Other Category And M.S. Wire Scrap-8568 Kg. And Cost Iron Scrap-317 Kg. At Area Store Barwaha For More Details Call on 7966172085/86 Or visit our website http://www.nationaltenders.com

A new Service

Next Services From nationaltenders.comNationaltenders.com will be laun0ch a new services of Tenders Results of Tender work or Private Work of any relevant work.. Contact us :- 079-66172085/86 support@nationaltenders.in