Lenders call for bids to rescue shadow bank Altico as crisis deepens

Alitco's bad loans spiked to 23.8% of its loan book in the July-September quarter, adding to concerns of recovery for the lenders

Lenders to an Indian shadow bank at the center of an industry crisis since it started defaulting three months ago have called for binding bids from potential rescuers by mid-January, people familiar with the matter said.

Altico Capital India Ltd. is one of the latest caught up in the nation’s shadow banking crisis, which has deepened as lenders already reeling from one of the world’s worst bad loan piles balk at extending more credit.

The shadow bank started defaulting on its interest repayments in September, and its lenders are keen for it to get an equity infusion for any debt