India an attractive investment bet; Bad bank need of hour for country: Henry Kravis

Henry Kravis, co-founder of Kohlberg Kravis Roberts & Co., smiles during a media briefing in Hong Kong September 16, 2013. REUTERS/Bobby Yip (CHINA - Tags: BUSINESS) - RTX13MWB

India should consider setting up bad bank to deal with the problem of non-performing assets (NPAs) that has plagued the Indian banking system, said Henry Kravis co-founder of Kohlberg Kravis Roberts & Co (KKR) in an interaction with journalists Wednesday at Vigyan Bhawan in New Delhi.

Bad banks are created to clear toxic assets off banks' balance-sheets. They buy out, usually at the market price, the non-performing assets (NPAs) of banks that find it difficult to raise further capital.

Kravis also told CNBC-TV18 in an interview that his company is bullish on India as it is attractive for investments.

There are investment opportunities available in mid-sized companies, he said.

KKR, he noted, wants to be seen as capital solutions provider than pure play private equity.

KKR, which has USD 130 billion of asset under management (AUM) worldwide and specialises in leveraged buyouts, currently focuses on distressed assets, special situation fund, and investments in asset reconstruction company (ARC).