$600-mn fund planned to instil investor confidence

January 18th, 2009 - 7:27 pm ICT by IANS  

Kolkata, Jan 18 (IANS) Asset Reconstruction Co (India) Ltd (Arcil), which picks up distressed assets in the country, will create a $600 million-fund by March to bring back confidence in the financial market, a top company official said here.”Arcil will pump in 20 percent of the amount and the rest will be given by five to six foreign investors and seven to eight Indian investors,” company managing director and chief executive S. Khasnobis told reporters on the sidelines of a conference Saturday.

At present, Arcil manages assets of Rs.100 billion.

Khasnobis said that by 2009, banks would likely sell stress assets valued at Rs.10 billion.

The top three shareholders of Arcil are State Bank of India (19.95 percent equity stake), IDBI Bank (19.18 percent) and ICICI Bank (13.26 percent).

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