ARC role in resolution may help pare NPAs to Rs 9.1 trn by March: Crisil

With the share of cash deals rising, discounts could remain high. To make way for newer acquisitions and attract new and repeat investors, ARCs must quickly resolve assets and redeem security receipts

The gross non-performing assets of the Indian Banking systems may decline to Rs 9.1 trillion by March 2020 from Rs 9.4 trillion a year ago, on increased level of stress resolution and the growing role of Asset reconstruction companies (ARCs), according to Crisil.

Large stressed borrowers have debt aggregating to Rs 5.4 trillion, which is a huge playing field in itself for investors. Of this, National Company Law Tribunal (NCLT) list-1 and list-2 account for about Rs 2.1 trillion and existing stock of NPAs make up another Rs 2 trillion.

Over and above this, assets of around Rs 1.3 trillion