A Rs.90, 000 crore opportunity
27 January 2004
The Securitisation Act 2002 has induced a fear in bank loan defaulters. Though the Act permits bankers to confiscate the pledged assets, they do have a problem here- the problem of disposing the security.
That the bankers do not have the skill set to run another business is well known. The same applies in the case of disposing an asset, which invariably is a distress sale. It is here that companies like Knights Restructuring Services Southern India sense a business opportunity.
Says managing director, Shashank Rajurkar: "There is a huge opportunity in India for turning around companies or for proper disposal of assets."
Rajurkar refers to the Rs.90,000 crore opportunity — the total non performing assets (NPA) run up by the domestic banking industry.
An engineering and management graduate, 38 year old Rajurkar spent eight years with IFCI Venture Capital Funds before starting his own venture capital firm Vencompass Consulting Partners.