Aditya Birla Capital gets RBI approval for asset reconstruction firm
Aditya Birla Capital subsidiary Aditya Birla ARC Ltd had received approval from the RBI to set up an asset reconstruction company
Mumbai: Aditya Birla Capital Ltd (ABCL) on Monday said its subsidiary Aditya Birla ARC Ltd had received approval from the Reserve Bank of India (RBI) to set up an asset reconstruction company (ARC).
ABCL applied for the ARC licence in April.
On 2 September, Kumar Mangalam Birla, chairman of the Aditya Birla Group, in an interview to Mint said ABCL will be looking at raising a distressed assets fund as part of its ARC.
India’s banking system is sitting on a pile of bad loans that are expected to cross Rs9 trillion by the end of the fiscal year 2018, according to a report released by credit rating firm ICRA Ltd on 31 August.
On 24 July, Mint reported that global private equity firm Blackstone Group was exploring setting up an ARC in India.
Some others who have applied for setting up ARCs include AION Capital Management Ltd, a joint venture between ICICI Bank Ltd and Apollo Global Management, US-based stressed asset specialist Lone Star Funds, global stressed asset specialist JC Flowers and Co. in partnership with Ambit Holdings Pvt. Ltd, domestic financial services firm IIFL Holdings Ltd and Sudhir Valia, the former chief financial officer of Sun Pharmaceutical Industries Ltd.
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