Deutsche Bank zeroes in on India's bad loans

The German lender is hoping to generate massive returns by refinancing and trading debt.

Bloomberg reports that India’s $210b of stressed assets is luring Deutsche Bank as the German lender is hoping for massive returns on the banking sector’s worsening bad debt burden by possibly offering debtor-in-possession funding, structuring equity and debt financing.

Also read: India mulls creation of asset management company to clean banking sector's bad loans

“For India, this is where we think the greatest alpha lies for our credit and financing businesses in the region,” Amit Khattar, Asia-Pacific co-head of global credit trading at Deutsche told Bloomberg.

“The bank has no constraint in terms of scaling up in this area if there’s an opportunity to grow the business.”

Deutsche Bank may have one advantage against all the other foreign speculators rushing to the country as much of the bank’s Asian credit exposure is in India and the nation accounts for the second biggest share of regional profits, trailing only behind Singapore.

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