JM Financial says good time for asset reconstruction biz

Financial services major JM Financial is expecting good business for its proposed asset reconstruction company (ARC) due to ongoing turmoil in the financial markets.    

The company has recently received approval from the Reserve Bank of India for starting an ARC through which it would buy distressed assets and sell them at a profit after turning them around.    

Nimesh Kampani, chairman and managing director of the company said in a statement while giving details of the second quarter performance, "The recent developments in the financial markets are likely to present interesting opportunities for acquisition of distressed assets for the ARC business".     

He said the existing pipeline deals are being pursued actively for conducting due diligence prior to acquisition.     

"Given the turmoil in markets, we believe that we will have several interesting distressed asset purchase and restructuring opportunities in the ARC business," he said.     

Referring to the overall market conditions, he said India is experiencing very difficult times.

Global markets have been going through a major turmoil. Emerging economies like India have also taken a beating despite strong fundamentals, he said.