MUMBAI: HDFC Chairman Deepak Parekh on Tuesday said he will discuss with State Bank of India for setting up of a distressed assets fund for the real estate sector. The fund will work in a similar manner in which the public sector and private sector partnered to invest and rescue Yes Bank.
"It was a joint public-private partnership to ensure that another bank (Yes Bank) doesn't go the IL&FS way. We had to join together and put some money. Similarly, we have to join and try to look for (real estate) stressed fund. I will talk to the SBI chairman and see whether we can come together to put capital and get some overseas player like International Finance Corporation (IFC) to come in and invest in that fund," Parekh told representative of real estate developers via video conferencing organised by real estate developer associations- NAREDCO and CREDAI.
Last year in November, the government had announced to set up a Rs 25,000 crore alternative investment fund - SWAMIH Investment Fund to provide debt financing for the completion of stalled housing projects. The investment manager of the fund is SBICAP Ventures.