New Delhi: Asset Reconstruction Company India (Arcil) said on 4 March it expects the bad debt acquisition size to go up to Rs2,500 crore by the end of March this year.
“We already have acquired about Rs2,000 crore of NPA during the current fiscal and by the end of this fiscal we expect this to be about Rs2,500 crore,” Arcil managing director S Khasnobis told PTI.
The company is negotiating with Bank of India for acquisition of non-performing assets worth about Rs250 crore.
“We are in talks with BoI and other banks but nothing has been finalized,” he said.
On 3 March, BoI chairman and managing director T S Narayanasami had said, “We are in the process of passing stressed assets ranging between Rs200-250 crore during the current month itself.”
The sale is likely to be in the form of aggregate bulk package of NPAs, he had said.
Arcil, the largest asset reconstruction company of the country, currently has assets under management AUM size of over Rs8,000 crore, while the amount it has acquired from banks and other financial institutions, including the overdue interest, is estimated at about Rs36,000 crore.
Khasnobis said the company is readying up to strengthen its dominance in the country’s asset reconstruction space and expects a 40% growth in both NPA acquisition and AUM in the next couple of years.
As on September 2007, Arcil acquired bad debts worth Rs11,209 crore from ICICI Bank, Rs5,051 crore from State Bank of India, Rs2,848 crore from IDBI and Rs1,290 crore from Punjab National Bank.