State Bank of India, which reported its highest quarterly net profit of Rs 8,431.9 crore for the October-December period, has decided to sell six NPA accounts to ARCs.
RBI’s permission to lenders to sell their ‘fraud’ loans to ARCs is set to trigger recovery efforts for dodgy assets worth Rs 4 trillion.
In stressed assets market shift as NARCL takes birth and looks to handle big-ticket corporate loans, ARCs will find opportunity in fresh NPAs from retail and MSME segments.
PNB has set the floor price of the sale of KSK Mahanadi Power loan worth Rs 1,719.85 cr at Rs 752.28 cr; sale will be done on a full cash basis.
Suraksha group close to taking over Jaypee Infratech after winning lenders’ approval; relief to over 20,000 homebuyers.
Banks have identified about 70-80 large NPA accounts to be transferred to the proposed bad bank; size of each of these accounts is over Rs 500 crore.
Though ARCs have grown in number and size, their potential for resolving stressed assets is yet to be realised fully, RBI governor Shaktikanta Das.
Responding to a whistleblower’s allegations, Ministry of Corporate Affairs orders inspection of books of Edelweiss Asset Reconstruction Company.
NPA resolution needs concerted effort, writes Edelweiss ARC chief RK Bansal. Banks need to sell bad loans at appropriate price, RBI should ease provisioning norms and ARCs develop ability to raise resources.
India's 4th-largest ARC, Kotak's Phoenix Arc, makes 5 bad loan purchases in the last two months after pausing since Mar; Covid also prompts the firm to slow down sales of its acquired stressed assets due to low pricing.
While Brookfield will hold 60% stake in the venture, SBI and HDFC each will own 20%.
After leading Edelweiss ARC to a record recovery in FY20, CEO RK Bansal has revised recovery & bad loan acquisition as intensity of Covid spreads in India.
