Page 4 - Asset Reconstruction Companies

How to reconstruct asset reconstruction companies

Banks feel happy shifting their toxic assets from loan books to investment books, while the ARCs are enjoying the management fees with a smile. Let's break the cosy relationship

Need new well-capitalised asset-reconstruction companies, says RBI study

Notwithstanding the increase in the number of ARCs over time, there has been a concentration in the industry in terms of AUM and the security receipts issued

Corporate affairs ministry probes irregularities at Edelweiss' ARC Arm

The corporate affairs ministry is inspecting books of accounts at the financial services firm

SBI to conduct e-auctions of 12 bad accounts this month to recover dues

SBI will conduct e-auctions of 12 bad accounts this month to recover dues of over Rs 506 crore under sale to asset reconstruction company (ARC) mechanism

Banks to seek leeway from RBI for new asset reconstruction company

Senior bankers said over 70 per cent provision for assets will be moved to the ARC

Budget: ARC to fast-track PSB clean-up, initial capital pegged at Rs 10K cr

In their post-budget media interaction, finance ministry officials said banks will put in capital in the AMC, and the govt will give support, if required

Stressed firms accuse ARCs of asset stripping in complaint to RBI

They say ARCs are giving backdoor entry to vulture funds through an effective "benami structure" after taking over debt from banks

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

ECL Finance puts stressed assets of Rs 2,393.4 crore on the block

March 23 is the last date to submit bids

UVARCL, a Delhi-based company that's sweeping up bankrupt telcos

UVARCL's biggest bid so far, for Anil Ambani's firms, awaits CoC clearance

Bad loans taken over by ARCs rose 17.4% in 12 months ended June 2019

The amount they bought of such NPAs in the 12-month period was less, at Rs 57,506 cr, from the Rs 67,830 cr they acquired in the previous such one-year period

Asset reconstruction companies banned from buying own group assets

The central bank said ARCs could not buy financial assets from a bank or financial institution which was the sponsor

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

Now is the time for a bad bank

The idea of a bad bank has been around for some time now though it was abandoned at one point

ARCs getting aggressive in asset purchase: Explained in three charts

Most of the assets picked up by ARCs are corporate loans

Asset reconstruction companies, banks differ on cleaning up bad debts mess

Banks want to dispose of the assets at a deep discount, but for upfront payments

Asset reconstruction companies can now acquire financial assets of peers

The selling ARC should use the proceeds for the redemption of underlying security receipts.

After SC verdict, asset reconstruction firms' wait for returns get longer

This comes at a time when the government is toying with the idea to launch a new asset reconstruction company for the power sector, which is saddled with bad loans worth Rs 2.5 trillion

Asset Reconstruction Companies to scale up operations in Indian banks

The primary reasons for spurt in stressed assets include aggressive lending practices, wilful default, loan frauds, corruption in some cases, and economic slowdown

RBI order may bump up ARCs' valuations

The Reserve Bank of India's dispensation to allow asset reconstruction companies (ARCs) to hold more than 26 per cent stake in distressed assets might bump up the valuations of the ARCs for foreign investors.The rule puts ARCs in a commanding position in deciding how an asset resolution should happen, something they could not do so far because of their limited shareholding. Technically, the latest rules give ARCs freedom to become owner of the stressed firm and drive the resolution process."We will now have better level of control and more say in how the company concerned should be operated," said Vinayak Bahuguna, managing director and chief executive officer of Asset Reconstruction Co of India (ARCIL). "Moreover, it gives ARCs the ability to maximise returns by increasing shareholding and selling the stake off in case a company turns around."The central bank, in a notification on its website on Thursday, did not specify an upper limit that an ARC can hold for debt converted into ...