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Bloomberg
The race to find a rescuer for a struggling Indian shadow bank at the center of an industry crisis has narrowed.
Altico Capital India Ltd is one of the latest caught up in the nation’s shadow banking crisis that started in 2018, and had been courting suitors. One of them, Kotak Investment Advisors Ltd, won’t make a binding bid for Altico by a January 15 deadline, people familiar with the matter said.
In India, non-bank financiers play a crucial role in funding everything from condominium construction to purchases of personal goods like cars and phones. Real-estate focused Altico’s restructuring and sale process comes as the broader shadow-bank crisis drags on, hurting the property sector and the economy.
The non-bank lender’s troubles have been piling up since it started defaulting in September. Cerberus Capital Management LP and SSG Capital Management are now the only remaining external bidders.