|
New
Delhi: India’s ministry of finance has decided
to split Industrial Finance Corporation of India (IFCI)
down the middle by segregating the good assets and the
bad assets into two entities.
The
restructuring of IFCI, along with that of Industrial Development
Bank of India (IDBI) and Industrial Investment Bank of
India (IIBI), is to be completed by 30 June 2003.
The
plans for restructuring IFCI are on lines with the report
that had been submitted by McKinsey & Co, which had
mooted the idea of splitting IFCI into a ‘good bank.’
Which means it would contain all the standard assets of
the institution, and a ‘bad bank' that would be saddled
with the bad assets. “We have decided to split IFCI
into a ‘good bank’ and a ‘bad bank’,”
says a senior finance ministry official.
He
says while the bad bank will be handed over to the asset
reconstruction company, Asset Care Enterprise (ACE), being
floated by IFCI itself, the good bank will remain an independent
| 
