KKR urges India to create state asset manager to clear bad loans
Private equity giant KKR has suggested the Indian government create a state-run asset manager to sell off the more than $180bn of bad loans that are weighing on the nation's economy. It said private capital should then be invited to buy the distressed assets in a plan that will prevent speculators "cherry picking" the best of the debts, said Sanjay Nayar, CEO of KKR’s India unit. The government has tried three plans, with limited success, to reduce the stressed assets that equate to almost 17% of India's total loans.
MUMBAI: KKR & Co has proposed a plan to help India’s government clean-up the US$180bil of stressed assets that are weighing on the South Asian nation’s banking system and economy.

Lenders should shift all soured debt above a certain limit to an agency that would be set up by the government and private capital must be used to revive these assets, Sanjay Nayar, chief executive officer for KKR’s India unit said at a Bloomberg private equity forum here last Friday.