Page 3 - Asset Reconstruction Companies

RBI raises minimum capital requirement for setting up ARCs to Rs 300 cr

The Reserve Bank on Tuesday raised the minimum capital requirement for setting up an asset reconstruction company (ARC) to Rs 300 crore from the existing Rs 100 crore with an aim to strengthen the securitisation sector which plays a vital role in the management of distressed financial assets. The existing ARCs have been given a glide path to meet the minimum net owned fund (NOF) requirement till April 2026, the RBI said in a circular amending the existing regulatory framework for such entities. "Consequently, any ARC obtaining the certificate of registration on or after the date of this circular shall not commence the business of securitisation or asset reconstruction without having minimum NOF of Rs 300 crore," the circular said, adding the guidelines are effective immediately. Under the earlier guidelines, each ARC was required to frame a board-approved policy laying down the broad parameters for settlement of debts due from the borrowers. Further, the board was permitted to ...

ArcelorMittal Nippon Steel India joins race to buy Srei group firms

Sources close to the development said whether new participants who were not part of the original list of EOI would be allowed will have to be evaluated

Will exit reconstruction scheme after lock-in period ends: YES Bank

The RBI has set three parameters for YES Bank before it can leave the reconstruction scheme

Bank NPAs loans may drop to 5% by March 2023 on economic rebound: Crisil

May even touch decadal low of 4% by March 2024; MSMEs remain vulnerable with one-fourth of recast accounts likely to turn NPAs

Yes Bank approves sale of Rs 48,000 cr stressed loans to JC Flowers ARC

Former RBI Deputy Governor R Gandhi appointed as Yes Bank's non-executive chairman

NARCL revises CEO Natarajan Sundar's salary to market rates: Report

In a bid to attract experienced talent, the National Asset Reconstruction Co Ltd (NARCL) has increased the total remuneration of its chief executive, Natarajan Sundar to Rs 1.7 crore

CFM ARC sells JBF Industries assets to Reliance Industries entity

RIL was the lone bidder for the company with a Rs 825-crore offer as against the dues of Rs 2,100 crore of banks

YES Bank plans to invest Rs 350 cr in JC Flowers, raise $1 bn in FY23

JC Flowers has been named as the base bidder for bad loans worth Rs 48,000 crore of YES Bank

News on RBI nod for ARC stake speculative, lacks bonafide sources: YES Bank

YES Bank clarified that it had indeed started the process of seeking a partner for an asset reconstruction company through a public expression of interest, but added that the process is still underway

LIC finds no takers among ARCs for Rs 3,400-crore Reliance Capital bonds

Multiple sources said ARCs did not find the option to buy bonds of the bankrupt firm attractive and decided to give it a miss

YES Bank's plan to sell Rs 12,000-cr bad loans to ARC faces delay

RBI wants the bank to avoid any conflict of interest with the ARC as YES Bank plans to hold a minority stake in the same ARC

National Asset Reconstruction Company may reshuffle accounts on first list

A total of 38 non-performing accounts, worth Rs 82,845 crore, were identified for transfer to NARCL in phases

Punjab & Sind Bank to buy 2% stake in bad bank NARCL for Rs 55 cr

Punjab & Sind Bank on Friday said it has entered into an agreement to buy 2 per cent stake in asset reconstruction company NARCL for Rs 55 crore. "Punjab & Sind Bank has entered into an agreement with National Asset Reconstruction Company on March 10, 2022 regarding investment in NARCL," the lender said in a regulatory filing. The bank said the equity investment would be done in tranches, with the first investment of Rs 28.18 crore expected to be completed by March 31, 2022. The financial investment is being done to ensure prompt resolution, including recovery of NPA (non-performing assets) accounts, the bank said. NARCL was incorporated on July 7, 2021 with a total authorised share capital of Rs 2,750 crore to act as a bad bank for speedy resolution of bad assets of the banks. In January, SBI Chairman Dinesh Khara said that 38 NPA accounts worth Rs 82,845 crore were identified to be transferred to NARCL. Transfer of these accounts will happen in a phased manner with banks ...

Insolvency process: Banks put 4 mega power projects on the block

Several ARCs, the Tatas, JSW and the Adani group expected to bid for these

Interpretation of ARC maladies

Regulatory oversight and supervision of ARCs need a revamp and, like other regulated entities, rogue ARCs should be punished

Unholy nexus between ARCs and borrowers found after IT raids: CBDT

The searches were launched on December 8, and a total of 60 premises in Mumbai, Ahmedabad, Delhi and few other places were covered

A new approach to identify bad loans is needed: Credgenics co-founder

The pile-up of bad loans is a pain point and the pressure is mounting, said Rishabh Goel

Sell bad debts early, let ARCs take part in IBC: RBI committee

About 80 per cent of the recovery ARCs made came through the "deployment of measures of reconstruction that do not necessarily lead to revival of businesses"

RBI panel makes host of suggestions to streamline functioning of ARCs

A Reserve Bank committee has come out with a host of suggestions including the creation of online platform for the sale of stressed assets

The NARCL must attract top-quality talent, says Kroll's Tarun Bhatia

'My sense is that the NARCL will have to recruit good talent', says Bhatia