THE Government's nod for 49 per cent FDI in asset reconstruction companies (ARCs) will attract specialist agencies from overseas, the Indian Banks' Association has stated.

The specialist agencies may well include certain foreign banks, which are believed to be interested in acquiring non-performing assets in the Indian market, the IBA chief, Mr H.N. Sinor, said, adding that the latest decision by the Government will enhance liquidity for the ARCs.

A number of overseas investors are said to have expressed interest on this front. CDC (earlier known as Commonwealth Development Corporation), for instance, has already mooted a venture along with a couple of other partners.

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