It is now curtains down for the long ailing Kolkata-based Industrial Investment Bank of India (IIBI). Mumbai-based Arcil, the leading entity in managing non-performing assets of banks and financial institutions, has acquired a majority of IIBI?s assets.
Conforming the development, S Khasnobis, managing director, Arcil said that his company had recently won 19 bids out of the total 25 bids to sell out IIBI?s assets. ?The total worth of assets that we have acquired will sum up to over Rs 200 crore,? he said.
The auctioning of sticky assets was is a part of the liquidation process of IIBI, which is also selling its real estate properties. Corporates like Kitply Industries, Mardia Chemicals, Ashima, Suman Motels, J K Cotton Spinning and Parsarampuria Synthetics were a part of IIBI?s Rs 350 crore bad loans.
Some major private sector banks and financial institution, such as Deutsche Bank, Yes Bank, Kotak Mahindra Bank, Standard Chartered Bank, and financial institution Industrial Finance Corporation of India (IFCI) are in the race to buy the IIBI assets.
Deloitte Touche Tohmatsu India was the advisors for the sale process. IIBI has seen all its employees shift to other banks and financial institutions over the last 18 months .
Arcil will try to recover the amounts by making use of many methods including restructuring of some accounts.
The funds generated from the sale of assets will be used to clear liabilities.
The banks, financial institutions, private equity funds, investment banks and merchant banking entities are also eligible to participate in the sale process.