ASREC, asset reconstruction firm, gets nod

ASREC (India) Ltd., an asset reconstruction company promoted by the Specified undertaking of the Unit Trust of India (UTI-I) and others, has received the certification of registration from the Reserve Bank of India, it said Thursday.

The central bank granted the certificate on Monday, it said in a release. The certificate would enable the company to carry out activities under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Bank of India, Life Insurance Corp. of India, Indian Bank, Allahabad Bank and IL&FS are the other promoters of the company, the release said.

Other entities such as IDBI Ltd., Standard Chartered Bank, Andhra Bank and Deutsche Bank have committed to contribute towards the equity capital of the company. ASREC has an authorised capital of 1.25 billion rupees, with current paid-up capital at 100 million rupees.

The company will acquire non-performing assets from lenders at mutually agreed prices, said Ajeet Prasad, a director of the company.

"Its objective is to maximise the returns from the NPAs through innovative resolutions strategies. ASREC is already in discussions with the lenders for acquisition of their NPAs," he added.