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Sale of Non Performing Assets (NPAs) to Asset Reconstruction in India
During the recent past, banks in India are found to be eager to sell NPAs to Asset Reconstruction Companies (ARCs). Sale of NPAs to ARCs is expected to pick up in the coming years. But there are several issues associated with their overall working. These relate to capital augmentation, liquidity ma...
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| Format: | Article |
| Language: | English |
| Published: |
2015
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| Summary: | During the recent past, banks in India are found to be eager to sell NPAs to Asset Reconstruction Companies (ARCs). Sale of NPAs to ARCs is expected to pick up in the coming years. But there are several issues associated with their overall working. These relate to capital augmentation, liquidity management to honor redemption of Security Receipts (SRs) timely, improving loan recovery with the existing legal framework, cost control etc. To resolve these issues, though RBI and Government of India have taken several initiatives, much needs to be done to make ARCs stronger. In this backdrop, the article attempts to make an overview of the working of ARCs, identifies issues and offer suggestions. |
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| Physical Description: | 226 - 234 |