Cash-strapped IFCI has struck deals with UTI Bank, ICICI, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) to sell off its assets. The objective is to generate liquidity. According to sources, the total assets sold by IFCI to these institutions could be over Rs 1,000 crore.
Since there is no secondary market for loans, IFCI has been asking its borrowers to convert the loans into marketable debentures and then sell them. It has been doing this over the last few months. IFCI chairman PV Narasimham confirmed the development and said that it was part of the securitisation programme.
According to sources, IFCI is selling these debentures at a premium.
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