SBI, Brookfield to set up stressed asset fund
There is currently an urgent need to increase the production of khadi, Jha said. Besides, the KVIC is also focussing on improving designs while bringing out khadi in wool, linen, silk and muslin. A massive marketing drive is also being planned to boost the sale of the fabric ahead of the Independence Day. The KVIC has also given a go-ahead to ready-made apparel brands, such as Fabindia and Raymond, to sell clothes made of khadi.
Recently, the Indian Institute of Technology (IIT) Bombay hit the headlines after placing an order for 3,500 convocation robes made of khadi. “After Gujarat University, now khadi has also made a niche in the hearts of authorities of the premier IIT Bombay,” the MSME ministry said in a statement. MUMBAI: State Bank of India and Brookfield Asset Management, a global alternative asset manager, will set up a distressed assets fund that will raise more than $1 billion, and use the proceeds to restructure and manage non-performing assets (NPAs).
India’s largest lender on Wednesday signed an MoU with Brookfield to collaborate on investment in stressed assets, where the global fund will “commit approximately ₹7,000 crore and SBI up to 5% of total investment,” SBI said in a statement.
It will be a joint venture, but the quantum of equity participation has not yet being finalised. It will look at contributions from other lenders at a later stage.
SBI chairman Arundhati Bhattacharya said collaboration with global players will enable banks to find alternate solution for resolution of stressed assets. It will also be more acceptable to both lenders and borrowers, especially in cases where promoters are not able to infuse funds, and lenders are reluctant to take additional exposure.
There are 8,167 wilful defaulters in the country, who owe banks ₹76,685 crore, finance minister Arun Jaitley has said.