Why ARCs see good times in bad debts

The huge pile-up of bad debts on bank books and a time-bound resolution process underway have offered a big opportunity for asset reconstruction companies (ARCs), which, after many years of slow business, are getting ready to strike gold.

Some ARCs have enough capital to explore the field on their own; others are willing to share the space with partners, who would contribute capital to buy stressed assets.

And then there are some that are getting into the space as Indian banks battle with bad loans of about Rs 10 lakh crore, and the regulator’s pressure on cleaning up their books