<p>Bad loans probably ballooned last quarter at Altico Capital India Ltd., according to people familiar with the matter, a lender that’s seen as a barometer in India’s evolving shadow bank crisis.</p>.<p>Soured debt was provisionally estimated at close to 40% of total credit end-December, up from 23.8% in September, the people said, asking not to be identified as the details are private. The final number will likely be shared with Altico’s creditors this week.</p>.<p>The surge in bad loans at real-estate focused Altico -- which reported a 1.8% ratio as recently as June -- shows the extent of the financial squeeze that triggered a spate of shadow bank defaults in India over the past 17 months. The crisis has contributed to the nation’s slowest economic growth since 2009.</p>.<p>Creditors are seeking external bids to compete with a shareholder-sponsored restructuring plan. Three potential bidders have already pulled out, leaving only Cerberus Capital Management LP and SSG Capital Management, which have both submitted indicative bids.</p>
<p>Bad loans probably ballooned last quarter at Altico Capital India Ltd., according to people familiar with the matter, a lender that’s seen as a barometer in India’s evolving shadow bank crisis.</p>.<p>Soured debt was provisionally estimated at close to 40% of total credit end-December, up from 23.8% in September, the people said, asking not to be identified as the details are private. The final number will likely be shared with Altico’s creditors this week.</p>.<p>The surge in bad loans at real-estate focused Altico -- which reported a 1.8% ratio as recently as June -- shows the extent of the financial squeeze that triggered a spate of shadow bank defaults in India over the past 17 months. The crisis has contributed to the nation’s slowest economic growth since 2009.</p>.<p>Creditors are seeking external bids to compete with a shareholder-sponsored restructuring plan. Three potential bidders have already pulled out, leaving only Cerberus Capital Management LP and SSG Capital Management, which have both submitted indicative bids.</p>