ARCIL board asks management to firm up a business plan of five years

Will link decision on MD and CEO tenure to plan

The directors of Asset Reconstruction Company (India) (ARCIL) have asked the management to firm up a plan of three-five years to scale up in the competitive distressed asset management space. 

It will also be used as input on career decisions of key management personnel.

Banking sources said the board with strong representations from banks as sponsors had reviewed the performance of the entity in the past four years. The change in the regulatory framework, the Insolvency and Bankruptcy Code (IBC), and the push for resolving cases of stressed loans have opened up opportunities. 

In addition, international distressed asset management player Avenue Capital is