ARCs getting aggressive in asset purchase: Explained in three charts

Most of the assets picked up by ARCs are corporate loans

Even as asset reconstruction companies (ARCs) complain about issues related to pricing of bad debts by banks, data shows they are doing well and are managing at least a Rs 1 trillion of stressed assets through security receipts (SR).

ARCs are complaining that banks these days are not selling enough loans to them through the SR route, in which the ARC will have to pay 15 per cent of the asset value, while the bank holds the rest. The ARC tries to recover the stressed loans and earn a fee in the process, apart from its own equity.  Edelweiss ARC is