ARCs earning from SR redemption up 15.8% in FY25 on better recovery

ARCs see 15.8 per cent growth in SR redemptions to Rs 43,256 crore in FY25; SR issuance declines, total dues acquired rise to Rs 16.14 trillion

The earnings of Asset Reconstruction Companies (ARCs) from redemption of securities receipts (SRs) grew by 15.8 per cent year-on-year (Y-o-Y) to ₹43,256 crore in the financial year 2024-25 (FY25).

 

The redemption of SRs, broadly representing recovery, improved substantially as the economy picked up and amount locked up in stressed sectors like power, infrastructure got resolved, according to the Association of ARCs in India.

 

ARCs had redeemed SRs worth ₹37,364 crore in FY24 and ₹27,356 crore in FY23. SRs are financial instruments issued to qualified buyers as consideration for purchasing distressed assets from banks or financial institutions.

 

While the redemption of