State Bank of India (SBI) will work with global investors to put funds into distressed corporate assets in country.
The largest lender in the country can partner with international investors interested in investing in distressed assets, its Chairman Rajnish Kumar
said, addressing webinar.
Besides, SBICAP Ventures, a subsidiary, can support and forge alliances for such opportunities. It is already managing a government-backed fund for completing stalled residential real estate projects. The bank is in dialogue with potential investors but no there is specific plan before us, Kumar said.
The debt recast is applicable for Covid-impacted companies and those that were facing stress before the pandemic spread.
According to rating agency ICRA, the total amount of the debt that could be restructured is between Rs 6 trillion and Rs 10 trillion. Banks
have an asset book of Rs 100 trillion and another Rs 35 trillion is from non-bank lenders.
While estimates about debt restructuring could vary, distressed asset opportunities are not as large as is projected, Kumar said.
The estimate of the amount of portfolio to be restructured is based on an assumption that the overall assets under moratorium came down to 20-25 per cent by the close of the six-month relief in August, ICRA said.