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Press Release

Times News Network
 Published : 23rd November, 2005

MatexNet to focus on NPAs in banks

Bangalore : After receiving seed funding from ICF Ventures in 2000, MatexNet, a company that specialises in the sale of surplus and non moving inventory and equipment in corporates, is now eyeing Non Performing Assets (NPAs) in banks.

Matex would soon tie up with a $ 2 billion foreign fund to form a joint venture. It is yet to be decided whether this venture will be part of the fund to be an asset restructuring company (ARC) or be a company to provide services to the ARC.

Without naming the fund with which it would soon be tieing up, S Jaganni Vasan, MD, MatexNet Pvt Ltd. said that they will look at banks that are willing to dispose their NPAs by finding suitable clients.

"Banks with NPAs wanted us to come up with a solution where they could derive value from these assets. This required a legal expertise. After evaluating, we signed with six banks that are willing to dissolve their NPA's," added S Yogeshwaran, director of Matex.

Says Vijay Angadi from ICF Ventures who is also the MD for NovaStar Funds. "This will open up a huge opportunity for banks to benefit from the NPA's."