Asset Reconstruction Company India Ltd (Arcil) acquired stressed loans, including non-performing assets (NPAs) worth about Rs 2,000 crore in FY15 from banks and financial institutions saddled with portfolio of bad loans.
In 2013-14, ARCIL had acquired assets worth Rs 4,400 crore. Its assets under management stood at Rs 11,000 crore at the end of 2014-15, up from Rs 6,000 crore three years ago.
P Rudran, managing director and chief executive, said there had been a slowdown in activity (acquisition) from the second quarter, after the Reserve Bank of India raised the minimum amount an ARC had to pay upfront to 15 per cent from the previous norm of five per cent.
While the obligation for paying upfront money went up, the valuation for assets being sold by banks never got adjusted, he said. Banks continued to seek higher prices for NPAs at auctions.
Banks and finance companies are believed to have put NPAs worth over Rs 90,000 crore in 2014.15. Out of this, only assets worth Rs 20,000 crore were picked up by ARCs.
In 2013-14, banks offered Rs 40,000 crore of NPAs in auction. ARCs picked up assets amounting to Rs 20,000 crore in FY14, he said.
Asked about ARCIL plans to raise capital and funds, Rudran said the company have comfortable capital position with net-worth of Rs 1,600 crore.
Also, debt seating on books in minimal and it has enough room to draw down funds from sanctioned credit lines, he added.
In 2013-14, ARCIL had acquired assets worth Rs 4,400 crore. Its assets under management stood at Rs 11,000 crore at the end of 2014-15, up from Rs 6,000 crore three years ago.
P Rudran, managing director and chief executive, said there had been a slowdown in activity (acquisition) from the second quarter, after the Reserve Bank of India raised the minimum amount an ARC had to pay upfront to 15 per cent from the previous norm of five per cent.
While the obligation for paying upfront money went up, the valuation for assets being sold by banks never got adjusted, he said. Banks continued to seek higher prices for NPAs at auctions.
Banks and finance companies are believed to have put NPAs worth over Rs 90,000 crore in 2014.15. Out of this, only assets worth Rs 20,000 crore were picked up by ARCs.
In 2013-14, banks offered Rs 40,000 crore of NPAs in auction. ARCs picked up assets amounting to Rs 20,000 crore in FY14, he said.
Asked about ARCIL plans to raise capital and funds, Rudran said the company have comfortable capital position with net-worth of Rs 1,600 crore.
Also, debt seating on books in minimal and it has enough room to draw down funds from sanctioned credit lines, he added.
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