Asset Reconstruction Companies

NARCL eyes acquisition of stressed loans in Bareilly, Mumbai Metro One

The consortium of lenders includes Punjab National Bank, India Infrastructure Finance Company (IIFCL), Bank of Baroda, Indian Overseas Bank, and Union Bank of India

Omkara ARC to buy Rs 6K cr NPA book of Stressed Asset Stabilisation Fund

After the revision in reserve price, NARCL and Omkara ARC put in binding bids to acquire the portfolio of NPAs, and subsequently, an auction was conducted to determine the winning bidder

ARCs to see 500-700 bps higher recoveries from residential realty: CRISIL

Healthy economic growth and buoyant residential demand across housing segments in the top six cities will lead to 10-12 per cent growth in residential realty demand this financial year

ARCs misused by 'tainted' promoters: RBI Deputy Governor M Rajeshwar Rao

Promoters in an Indian market are large shareholders who can influence company policy and, according to regulatory definitions, are prospective owners or directors of the company

RBI bars Edelweiss ARC from acquiring financial asset with immediate effect

The central bank also bans Edelweiss arm ECL Finance from undertaking any structured transactions

RBI flags concerns over functioning of asset reconstruction companies

Swaminathan J urged ARCs to adopt an approach where there is compliance "with both the letter of the regulation and also its spirit," the central bank said in a statement

Central Bank, JC Flowers ARC join race to bid for Future Enterprises

Bidders interested in two insurance joint ventures

Bandhan Bank to transfer housing finance NPAs to asset reconstruction co

The board of private lender Bandhan Bank has approved a proposal to transfer the housing finance NPAs to an asset reconstruction company. In a regulatory filing on Thursday, the bank said the housing finance NPAs will have days past due (DPD) of more than 180 days. The outstanding amount that will be transferred to the company is Rs 775.62 crore as on September 30, 2023. The lender had received a binding bid of Rs 280.39 crore for the NPA portfolio on outright cash consideration basis, it said. It will go for bidding as per the Swiss Challenge Method, and the decision of the sale will be taken based on extant guidelines governing the bidding process and the relevant policy of the bank, the filing said. Meanwhile, Bandhan Bank also said it has signed an MoU with the Assam government, securing the mandate to collect revenue on the accounting portal of the state called GRAS. Under the agreement, consumers can pay all kinds of utility taxes of the Assam government as well as examinat

OTS slows down recoveries from retail portfolios for ARCs to 35%: Report

Recoveries by asset reconstruction companies (ARC) from retail loan portfolios have slowed down to 35 per cent since the launch of the one-time settlement (OTS) scheme in October last year, a domestic rating agency said on Thursday. The ARCs have started following measured steps to ensure realizations, which has slowed down the pace of recovery, and the recovery timelines can have got stretched by three to four quarters, India Ratings and Research said in a report. Recoveries across retail loan, including housing and ones to micro, small and medium enterprises, have seen a drag, coming at 35 per cent of the principal outstanding during June-December 2022 review cycle, the agency said. The rating agency said a change in prescribed norms, which now require an independent advisory committee to examine all settlement of dues with borrowers including retail, SME and MSME loans may be resulting in this and added that as per OTS, all the methods of recoveries shall have to be exhausted ...

Assets should ideally be churned within five yrs: Arcil's Pallav Mohapatra

In a Q&A, the MD & CEO of the firm dwells on its business model and the focus on retail assets to drive volume, going forward

Asset reconstruction companies set to grow 10% this fiscal: Report

The asset reconstruction industry is set to clock the best growth this fiscal as their asset under management is expected to increase by almost 10 per cent to Rs 1.1 lakh crore, a report said on Thursday. The 29-player ARC (asset reconstruction company) industry began its journey in the second half of 2002 and has since undergone radical regulatory changes and challenges. With the beginning of operation of public sector National Asset Reconstruction Company Limited (NARCL) and rising popularity of the Insolvency and Bankruptcy Code (IBC) effective from May 2016 also pose challenge for the ARC industry. Another major challenge is the steep fall in banks' non-performing assets (NPAs), which is set to fall to under 5 per cent by March, down from over 11 per cent in FY18. Assets under management (AUM) of ARCs are set to grow 9.8 per cent to a five-year high this fiscal, driven by a few large transactions to Rs 1.19 lakh crore. The AUM stood at Rs 1.09 lakh crore in FY22 and at Rs 1.03

Reserve Bank of India tightens norms for ARCs on income recognising fee

They will have to reduce unrealised management fees where the net asset value of the Security Receipts has fallen below 50 per cent of the face value

Banks may recover close to Rs 15,000 crore from Srei group resolution

Lenders may get nearly 45% of the admitted claim of Rs 32,750 crore from NARCL

10 NBFCs, 1 asset reconstruction firm defer registration certificates: RBI

The Reserve Bank of India on Wednesday said 10 NBFCs and one asset reconstruction company have surrendered their registration certificates

CoC won't accept revised Varde-Arena offer for two Srei companies

Financial lenders include State Bank of India, Punjab and Sind Bank, Axis Bank, HDFC Bank, Union Bank of India, IDBI Bank, UCO Bank, and Indian Overseas Bank

Bandhan Bank to sell stressed loans to ARC for the first time: Source

Bandhan Bank's announcement of sale of stressed loans to an asset reconstruction company (ARC) will be the first such instance for the private lender, a source in the bank said. The lender had on Wednesday said it will sell stressed loans to an ARC after a portfolio of Rs 8,897 crore was written off. The bank has received binding bid from an ARC, amounting to Rs 801.00 crore..., it had said in an exchange filing. The written off amount was on account of small businesses and agriculture loans (SBAL) or micro-credit advances, the source said. It had become stressed during various phases of operation since the bank's inception as a lender in August 2015. This is for the first time that the bank will sell stressed loans to an ARC, he said. The bidding will be as per the Swiss Challenge Method (SCM) on a binding bid of Rs 801 crore offered by the ARC. Under SCM, the bank will receive bids on the reserve price of Rs 801 crore, and the highest bidder will get hold of the portfolio, the

Revised RBI guidelines on securitisation likely to impact short-term loans

But they are unlikely to disrupt the securitisation market as such loans constituted only 5% of the total securitisation volume in H1FY23

JM Financial ARC plans recoveries worth Rs 1,000 cr in 18 months

Company added Rs 600 crore in assets in six months, as it makes recoveries from acquisitions earlier

At the crossroads: How are ARCs to augment their capital to Rs 300 crore?

The asset reconstruction business is in for a big change, but there are doubts if this will lead to better results

Game-changing rules for asset reconstruction companies

The new norms succinctly sum up the RBI's view on how some of the ARCs have been run