After strong growth in fiscal 2023 driven by sale of both corporate and retail loans by banks and non-banking financial companies, supply of bad loans to asset reconstruction companies (ARCs) is expected to moderate in the near term, considering the cyclically low levels of gross non-performing assets (GNPAs) in India.
The stressed assets industry has evolved over the years in tandem with changing business landscape and regulations. Transition towards higher supply of retail bad loans, higher proportion of cash deals, and creation of National Asset Reconstruction Company Ltd are developments that will drive growth strategies for the sector.
The ARCs have also been agile in riding the non-corporate delinquency wave by building internal capabilities and partnerships with originators. Regulatory changes, requiring them to invest lower capital than earlier, have also given them a leg-up.
Recent years have seen the creation of a conducive ecosystem for attracting and resolving stressed assets. The Insolvency and Bankruptcy Code, 2016, has been strengthened, and accelerated regulatory reforms have provided several options for resolution.
Given their longstanding presence and expertise, ARCs remain a key constituent of the stressed assets ecosystem.
Recoveries for the sector are also on an improving trend, and cumulative redemption ratios are likely to ramp up considering faster resolutions and improving business outlook.
Against this backdrop, CRISIL Ratings is organising a webinar on January 30, 2024, titled 'Realigning strategies to sustain growth.'
Our experts will delve into:
Growth prospects and evolving business strategies for ARCs
Outlook on corporate and retail stressed assets
Opportunities in the Indian distressed assets market
Trends in recovery of security receipts and credit outlook
Impact of the Insolvency and Bankruptcy Code and its effectiveness
The presentation will be followed by a panel discussion with industry leaders, and a Q&A session.
Do connect to gain sharp insights from the best minds in ARC industry.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
