On Friday, S Khasnobis, managing director & CEO, Arcil, the largest domestic asset reconstruction company, said that the company has added retail assets worth Rs 400 crore during the first half of the year. He also said that the company has plans to add assets worth Rs 600-Rs 700 crore in the remaining part of the year.
?We are expecting a total acquisition of Rs 2,500 crore, of which 20-25% would be on the retail side,? said Khasnobis. Khasnobis said that in the last six months Arcil has acquired a Rs 400-crore mortgage portfolio and a very small portion of vehicle loans- about Rs 20-Rs 30 crore from both public and private players. Khasnobis was speaking on the sidelines of a seminar on ?Global Banking: Paradigm Shift? organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) and the Indian Banks Association (IIBA), in Mumbai. Currently, the company is growing at the rate of 20%-25%. ?We have a total budget of Rs 11,500 crore and out of this, we have Rs 10,000 crore under assets under management (AUM),? said Khasnobis. He also said that the company was in the process of completing its rights issue. ?The company has also raised Rs 900 crore through a rights issue,? said Khasnobis. The capital of Arcil after the rights issue stands at Rs 325 crore. Following the rights issue, the stake of the government of Singapore?s investment arm, GIC, in Arcil has gone up to 9.9%. ?Looking at our business model in India, we need capital to keep investing,? said Khasnobis. Arcil has completed securitisation deals worth Rs 1,100 crore, during the first half of the year,? said Khasnobis. ?Currently, we have a net worth of Rs 200 crore which will grow to Rs 1,100 crore,? he added.
The company had mentioned that it has so far done deals with 60 banks. In the last quarter, another 5-6 banks sold their sticky assets to Arcil. Khasnobis said that there would be stressed assets in the retail segment and expected a 3%-4% growth in non-performing assets (NPAs) in the retail sector. ?The retail loan segment has been contracting for the past 2-3 years,? he added.
Talking about the current situation when banks are going through a rough phase, Khasnobis said that in such a tight liquidity scenario, there will be pressure on bad loans.