Arcil acquires Rs 1,200 cr of retail consumer loans

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Mumbai, Aug 25: Arms, a pioneering initiative of Asset Reconstruction Company of India Ltd (Arcil), has recently acquires over Rs 1,200 crore worth of distressed consumer loans including housing and auto portfolio. This recovery mainly includes housing loans of Rs 1,000 crore given by National Housing Board and ICICI Bank. Arcil has sticky assets of around Rs 10,000 crore which have been acquired from other banks and financal institutions during the last three years

S Khasnobis, managing director and CEO, Arcil, said, “This is the first time that an organised pan-India attempt is being made to recover distressed consumer retail loans. Arms would focus on resolution through dialogue and borrower co-operation, thereby fostering the culture of responsible borrowing and repayment.”

Khasnobis said the resolution strategy for retail assets that would be acquired by Arms would be quite different from corporate assets’ recovery practice adopted by Arcil. In the retail loans segment, a recovery solution would be arrived at after thoroughly assessing the borrowers’ paying capacity and the values of the collaterals. However, the company would not acquire unsecured loans like credit and personal loan. “Though we would acquire them, at a much later stage, we will have to deal with them indirectly as it may involve the same borrowers. We will try to work out a resolution for retail assets,” he said.