In a rare move, top bad-debt buyer Edelweiss eyes loans that have gone sour

Banks have been channeling increasing amounts of credit to retail consumers after defaults among corporate borrowers eroded their profitability

India’s massive pile of bad business debt has kept asset-reconstruction companies busy in recent years.

But as signs emerge that the supply of such assets may be leveling off, the nation’s largest buyer of bad loans is considering a rare move to start purchasing soured consumer debt. Edelweiss Asset Reconstruction Co. is setting up a team for that and seeks to start purchases in 2019, Chief Executive Officer Raj Kumar Bansal said in an interview.

“Corporate non-performing assets have plateaued,” Bansal said. “There will, therefore, be more business opportunities for purchases of retail loans. We will start with buying mortgage loans first,