Kotak Halts Bid for Shadow Bank Altico at Center of India Crisis

The race to find a rescuer for a struggling Indian shadow bank at the center of an industry crisis has narrowed, Bloomberg News reported. Altico Capital India Ltd. is one of the latest caught up in the nation’s shadow banking crisis that started in 2018, and had been courting suitors. One of them, Kotak Investment Advisors Ltd., won’t make a binding bid for Altico by a Jan. 15 deadline, people familiar with the matter said. In India, non-bank financiers play a crucial role in funding everything from condominium construction to purchases of personal goods like cars and phones. Real-estate focused Altico’s restructuring and sale process comes as the broader shadow-bank crisis drags on, hurting the property sector and the economy. The non-bank lender’s troubles have been piling up since it started defaulting in September. Read more