Banks come up with norms to shortlist bidders for troubled assets

These criteria need to be admitted in the bidding for assets put on the block under the Insolvency and Bankruptcy Code, said two people familiar with the developments.

As fear of investigative agencies disrupting their lives grips banks, even if they adhere to the bankruptcy process, they have come up with a common set of evaluation criteria to select potential buyers for troubles assets, according to an ET report.

 
These criteria need to be admitted in the bidding for assets put on the block under the Insolvency and Bankruptcy Code, said two people familiar with the developments. 
 
The ability of the bidders to bring in equity funding, future potential to borrow, past track record of turning around projects are among the criteria evolved after weeks of deliberations, they added.
 
“As a bank I am interested in getting most of my money back in the shortest possible time and with the least amount of haircut,” a banker at a state-run bank told ET. 
 
“With these objectives in mind, whosoever gives me a cheque with a single amount I am happy with it because it will help me get rid of the non-performing loans,” he added. 
 
Source: ET

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