Sidbi floats asset reconstruction company for MSMEs

The Small Industries Development Bank of India (Sidbi) has floated the country's first asset reconstruction company focussing on non-performing assets of micro, small and medium enterprises, christened India SME Asset Reconstruction Company (ISARC).

Sidbi, along with Life Insurance Company and a few leading public sector banks and state-level institutions, has floated this company, a press release issued here today said.

ISARC's Managing Director and CEO P Rudran said while launching the company's website, www. Isarc.In, that the initiative fulfils a long-standing need of an asset reconstruction company for the MSME sector. "The business, however, would not be limited to MSME-NPAs alone," he said.

 

Plans existed to also include NPAs in the large corporate sector, Rudran said, adding that "the set up of ISARC would enable public banks to focus on their core business -- lending".

The company is yet to receive Reserve Bank registration.

Sidbi's Chairman and Managing Director R M Malla is the Chairman of ISARC.