SBI to float $2-bn distressed asset fund; to bring in global partners

The size of the distressed asset fund is expected to be on the lines of the government of India-backed AIF for distressed housing projects

The country’s largest lender, State Bank of India (SBI), plans to float a distressed asset fund in the new year and will be roping in a global partner to raise money from international investors. 

Rajnish Kumar, chairman, SBI, told Business Standard: “We are expanding our fund management business. At present, SBICAP Ventures, a fund management arm of the group, is managing a realty fund. It is looking at a distressed asset fund too.” 

SBICAP Ventures is creating capabilities to manage the fund, he said. The size of the distressed asset fund is expected to be on the lines of the