The Hindu Business Line : ARCIL sees more stressed assets from retail sector

Mumbai, Nov. 7 ARCIL, an asset reconstruction company, hopes to acquire stressed assets worth Rs 2,500 crore in the current year, said Mr S. Khasnobis, Managing Director and CEO. Of this, 20-25 per cent will be retail assets, he said.

Speaking on the sidelines of a banking seminar by FICCI and IBA, Mr Khasnobis said the company has done securitisation deals worth Rs 1,100 crore in the first half of this fiscal, of which retail loans account for about Rs 400 crore. This consists of mainly mortgage loans. Vehicle loans form a small portfolio of about Rs 20-30 crore. Retail loans are likely to touch about Rs 600-700 crore this year.

The total AUM (Assets Under Management) is at Rs 10,000 crore and has been growing at a rate of 20-25 per cent, which is likely to continue. The budget for the AUM this fiscal is about Rs 11,500 crore, Mr Khasnobis said.

The company has deals with over 60 banks and added 5-6 new banks in the last quarter. “The incremental growth in NPAs is not going to be significant in the next six months. Banks will sell only those loans from where recovery will be nil. So, it makes sense for them to sell it off. Banks in India have holding capacity as they are well capitalised. So, they will hold onto those assets from where recovery is possible,” Mr Khasnobis said.

Rights issue

ARCIL will raise about Rs 900 crore through its rights issue, which is in the process of being concluded. Following the issue, the networth will increase from Rs 500 crore to about Rs 1,400 crore, Mr Khasnobis said.

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