*ARCIL to launch $600-m asset reconstruction fund by March *

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*Our Bureau *

Kolkata, Jan. 17

ARCIL is preparing to launch a new $600-million asset reconstruction fund.
Mr S. Khasnobis, Managing Director and CEO of ARCIL, told reporters here on
Saturday that the new fund would be launched before the end of this fiscal.

Mr Khanobis, who was here to attend 4th ANMI International Convention –
India Securities Forum 2009, said that ARCIL would put in around 20 per cent
of the "committed" corpus.

A dozen other financial institutions, including overseas entities, are
likely to join in. The new fund is to acquire secured stressed assets from
the banks, which may be available shortly.

 The current economic slowdown has put a pressure on loan asset quality of
the banks. Some loan portfolios, including retail ones, also need urgent
rescheduling, according to bankers.

ARCIL has estimated that non-performing assets worth around Rs 1,000 crore
would be up for sale soon. The banks would attempt to clean their balance
sheets before the financial year ends and get rid of stressed assets as far
as possible. The new ARCIL fund launch would be timed to participate in the
process.

ARCIL has been planning to launch a fund since middle of last year. Earlier,
the fund corpus target was $1 billion. Turmoil in the capital markets in the
second half of 2008 saw a revision in the ARCIL plan, sources said.


http://www.thehindubusinessline.com/2009/01/18/stories/2009011851170100.htm

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