Deals
KKR Pitches Plan to Resolve World's Highest Bad Asset Ratio
- Apollo Global pegs India stressed debt at about $300 Billion
- Bad debt issue has to be solved by the government: TPG
KKR Tackles World's Highest Stressed Asset Ratio
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KKR & Co. has proposed a plan to help India’s government clean-up the $180 billion of stressed assets that are weighing on the South Asian nation’s banking system and economy.
Lenders should shift all soured debt above a certain limit to an agency that would be set up by the government and private capital must be used to revive these assets, Sanjay Nayar, chief executive officer for KKR’s India unit said at a Bloomberg private equity forum in Mumbai on Friday. This will prevent “cherry picking” of assets that banks dispose off and the government can inject equity into state-controlled lenders to make good the losses, Nayar said, without providing more information about the plan.