INSUBCONTINENT EXCLUSIVE:
Mumbai: Bad-loan aggregator Asset Reconstruction Company India (Arcil) has managed to increase recoveries to the highest in a decade in
FY19, aided largely by the sale of properties across the country.
The company now plans to diversify its business with new verticals, such
as advisory for banks, and start a new $100-million distressed fund for small and medium enterprises (SMEs)
market, we managed to increase recoveries to ?1,100 crore from ?700 crore the previous year
Bahuguna, CEO, Arcil.
About 62% of these recoveries went back to banks from where these assets were bought in exchange of security receipts
Arcil managed to sell more than 1,500 properties across the country last fiscal
About half of the recoveries came from selling large land parcels to end users, such as factory owners
recoveries to ?1,500 crore in FY20, mostly from asset sales in the busy season in the last quarter of the fiscal
Bahuguna has set an ambitious target of acquiring assets worth ?4,000 crore to ?5,000 crore even though so far in the first half of this
year, only ?393 crore worth of bad loans could be acquired
Avenue is more than happy to co-invest with us
particularly with our technology products
We are in discussions with large financial institutions to manage their bad loan auctions, for example, for a fee
The company expects new businesses to add up to 40-50% of overall revenues in five years, helping increase profits
On the cards is also a $100-million fund for investments into distressed SMEs