Unit For Recovery Services Set Up

KMFL has set up a new asset reconstruction division to offer recovery management services to players in the financial services industry.

The company will work out strategies for clients to recover their non-performing assets. Kotak Mahindra will charges a standard fees for the service along with some percentage of the amount recovered from the client.

"The company has gained lot of expertise in recovering its own assets and hence it was decided to offer this as a product in the industry. The strategies suggested include legal mechanism, compromise and MIS system," said K V S Manian, vice president of KMFL.

"The company also deputes its officials to the client for effective management of portfolio and speedy recovery," he said. At present, the company has one NBFC client under this scheme and is in talks with other banks and finance companies.