Page 2 - Arcs
Centre may tell IBA to set up 'bad bank' with financial support from banks
The IBA had proposed a national-level asset reconstruction company (ARC) owned by the government with its capital infusion worth Rs 10,000 crore
 "Centre may tell IBA to set up 'bad bank' with financial support from banks")
Inevitability of defaults: Promoters gripe over loans being sold to ARCs
'Once the moratorium is lifted, we expect several companies to default. The bank will have no other option but to either restructure the loan or sell it to ARCs,' says a banker
 "Inevitability of defaults: Promoters gripe over loans being sold to ARCs")
ARCIL looks to increase return on assets to over 10% in next 3 years
The firm has also started purchasing some assets with Avenue Capital as a co-investor
 "ARCIL looks to increase return on assets to over 10% in next 3 years")
SBI to conduct e-auction of 11 accounts on Nov 7 to recover Rs 467-cr dues
The State Bank of India (SBI) will conduct an e-auction of 11 bad loan accounts on November 7 to recover dues of Rs 466.49 crore. In terms of the bank's revised policy on sale of financial assets, in line with the regulatory guidelines, the bank will place 11 accounts for sale to ARCs/banks/NBFCs and FIs, SBI said in an auction notice. The bank said the financial assets were showcased on October 12 and the e-auction will take place on November 7. The major non-performing asset (NPA) accounts to be auctioned include Bhatia Global Trading (BGTL), which has an outstanding of Rs 177.02 crore on the bank, Bhatia Coke & Energy Ltd (Rs 104.15 crore), Bhatia Coal Washeries (Rs 12.58 crore) and Asian Natural Resources (India) Ltd (Rs 2.18 crore). Maharastra Steels Pvt Ltd (Rs 40.51 crore), Anshul Steel Ltd (Rs 37.70 crore) and Vidhata Metals (Rs 36.98 crore) are the other accounts to be auctioned. The auction for the accounts will be held under the 'Swiss Challenge Method', based on an ...
 "SBI to conduct e-auction of 11 accounts on Nov 7 to recover Rs 467-cr dues")
ARCs getting aggressive in asset purchase: Explained in three charts
Most of the assets picked up by ARCs are corporate loans
 "ARCs getting aggressive in asset purchase: Explained in three charts")
How can ARCs help solve the banking crisis?
For an ARC to make sense, it must be a simple private equity fund
 "How can ARCs help solve the banking crisis?")
ARCs to face capital challenges despite Budget booster
Currently, there are 16 ARCs in India; their assets under management were estimated at Rs 55,000 crore in June 2015
 "ARCs to face capital challenges despite Budget booster")
