Destimoney plans to start asset reconstruction biz
Destimoney Financial Services (formerly Dawnayday AV Financial Services) is planning to foray into asset reconstruction and secured loans business. It has already started the groundwork and plans regulatory filing for asset reconstruction by the beginning of the next financial year.
“We are looking to get into secured lending and asset reconstruction,” said Vivek Vig, chief executive, Destimoney Financial Services.
The asset reconstruction business has been attracting new players of late. Recently, JM Financial received the Reserve Bank of India’s licence for setting up an asset reconstruction company (ARC). Kotak Mahindra got an ARC licence recently. Edelweiss is also looking at setting up an ARC. Bad loans in the banking industry have been rising, which is a good opportunity for ARCs.
In May 2009, Destimoney picked up 26 per cent stake in the housing finance company, PNB Housing Finance.
As a first step towards entering secured lending, Destimoney is looking at gold loans. “We are already pilot-testing it in six cities. We see gold loans as a huge opportunity, especially in south India”, said a senior Destimoney official.
Private equity fund New Silk Route acquired Dawnay Day AV in 2008 from its majority shareholders, Dawnay Day and Alok Vajpeyi.