Mumbai: India's largest asset reconstruction
company Arcil today said it is 30 per cent short of its target
of buying bad debts worth Rs 1800 crore from banks and
financial institutions so far this fiscal.
"We are 30 per cent short of our original target (of
acquiring bad debts) of Rs 1,800 crore so far this fiscal,"
Arcil's Managing Director & Chief Executive Officer S
Khasnobis told reporters on the sidelines of AVCJ Private
Equity conference here.
Khasnobis said "less flow" from the corporate sector as
the Reserve Bank allowed banks to restructure slippages either
by extending the repayment time or giving interest rate
relaxation caused the firm to be behind target.
The RBI allowed banks to restructure their corporate
advances as the global financial crisis hit demand and in
turn, adversely impacted profitability, resulting in an
increase in defaults.
Arcil could acquire only around Rs 1,260 crore debt while
it should have actually bought around Rs 1,400 crore had it
been on target.
A large proportion of bad debts bought came from retail
portfolios and the rest from corporates, Khasnobis said.
"Majority was retail," Khasnobis said.
Arcil is India's largest asset reconstruction company
and its promoters include the State Bank of India, IDBI Bank,
ICICI Bank and Punjab National Bank.
PTI
First Published: Thursday, December 03, 2009, 18:42