MUMBAI: The Sashakt Asset Management Company (AMC) to be set up as part of the resolution of stressed assets of public sector banks, has been incorporated and the committee is in the process of identifying sponsors for the AMC, said Sunil Mehta, chairman of the Sashakt committee on the sidelines of the CII-CFO summit in Mumbai on Thursday.
Once the sponsors and potential fund sources are identified, the Alternate Investment Fund (AIF) would be formed, Mehta said.
"As part of the group, we are working with SBI, BOB and PNB, now we will start engaging with private sector banks. AMC doesn't require more than Rs 30-40 crore investment. AIF will require funds to be committed. We have been in touch with many domestic and global investors. There is a great interest in the entire stressed assets potential in the Indian market. Quality of assets are exceptional," he said.
The ARCs (asset reconstruction companies) can also be part of it, he added. The government and the Project Sashakt conceived to tackle the stressed assets in the banking sector, as complimentary to the IBC resolution process have come up with a five-point strategy for stressed assets under two categories, one below Rs 50 crore, and another between Rs 50 and Rs 500 crore.
Banks either singly or as joint lenders have exposure to around Rs 2.1 lakh crore of stressed assets worth Rs 50 crore or less, Mehta said. The inter-creditor agreement for transfer, trading of stressed assets have been already signed by 33 banks, and Indian Banks Association is in the process of implementing it.
The operating guidelines have been circulated to all the banks by IBA and once 66 per cent of the banks sign that, the entire process will become operations, he said.
"We have suggested asset trading platform. Which becomes even more relevant in today's situation," said Mehta who.
The asset trading platform will offer mobility, where performing or non-performing asset can be traded with very little arbitrage.