Latest news with #ARCAssociation
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Business Standard
4 days ago
- Business
- Business Standard
ARCs acquire stressed loans worth ₹16,876 cr in Q1: ARC Association
Asset reconstruction companies (ARCs) in India acquired stressed loans worth ₹16,876 crore in the first quarter ended June 2025 (Q1FY26), marking a 22 per cent year-on-year (Y-o-Y) rise. They had acquired stressed loans — non-performing assets (NPAs) plus loans with dues up to 90 days — worth ₹13,852 crore in April–June 2024 (Q1FY25), according to data from the Association of ARCs in India. The association flagged the risk of rising stress in the system due to the likely adverse fallout of high tariffs being imposed by the US on Indian goods exports. ARCs issued security receipts (SRs) worth ₹4,388 crore in Q1FY26, up 19.3 per cent Y-o-Y from ₹3,678 crore in Q1FY25. The pace of SR redemption was higher at 22 per cent Y-o-Y. Redemptions totalled ₹7,725 crore in Q1FY26, compared to ₹6,310 crore a year earlier. This led to a contraction in outstanding SRs — considered as assets under management (AUM) — to ₹1.30 trillion at end-June 2025 from ₹1.36 trillion in June 2024. Hari Hara Mishra, chief executive officer, ARC Association, said: 'Overall Q1 performance this year was slightly better than Q1 of last year (Q1FY25). However, negative AUM continues. Things are likely to change, as pockets of stress are getting broad-based. The global uncertainty and rise of insolvency in major economies indicate stress is building up, and its contagion effect on domestic firms cannot be ruled out.' 'NPAs are cyclical and do not have a linear end. Going forward, book building at ARCs is likely to grow,' Mishra added. On SR issuance, the association said corporate SRs in Q1FY26 stood at ₹2,675 crore, down from ₹3,182 crore a year earlier. However, retail acquisitions jumped, with SRs worth ₹1,713 crore issued in Q1 compared to just ₹496 crore a year ago. The threefold rise in retail SRs provided a glimmer of hope against the decline in corporate SRs. Recovery remained robust at ₹14,046 crore in Q1FY26, compared to ₹46,621 crore for the whole of FY25. Restructuring measures were the dominant resolution strategy, accounting for 40 per cent Y-o-Y of recovery in Q1, followed by 26 per cent through settlement and 34 per cent through asset sales, the association said.
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
Indian ARCs acquire stressed loans worth ₹16,876 crore in Q1 FY26
Asset reconstruction companies (ARCs) in India acquired stressed loans worth Rs 16,876 crore in the first quarter ended June 2025 (Q1FY26), marking a 22 per cent year-on-year (Y-o-Y) growth. They had acquired stressed loans — non-performing assets (NPAs) plus loans with dues of up to 90 days — worth Rs 13,852 crore in April–June 2024 (Q1FY25), according to data from the Association of ARCs in India. The association flagged the risk of rising stress in the system due to the adverse fallout of high tariffs on Indian exports. Security receipts (SRs) issued in Q1FY26 stood at Rs 4,388 crore, up 19.3 per cent Y-o-Y from Rs 3,678 crore in Q1FY25. The pace of SR redemption in Q1 was higher at 22 per cent Y-o-Y, with absolute redemptions amounting to Rs 7,725 crore, up from Rs 6,310 crore a year ago. This led to a contraction in outstanding SRs — considered assets under management (AUM) — to Rs 1.30 trillion at end-June 2025 from Rs 1.36 trillion a year earlier. Hari Hara Mishra, Chief Executive Officer, ARC Association, said: 'Overall Q1 performance this year was slightly better than Q1 of last year (Q1FY25). However, negative AUM continues. Things are likely to change, as pockets of stress are getting broad-based. Global uncertainty and rising insolvency in major economies indicate stress is building up, and its contagion effect on domestic firms cannot be ruled out.' 'NPAs are cyclical and do not have a linear end. Going forward, book building at ARCs is likely to grow,' Mishra added. Corporate SR issuance in Q1FY26 stood at Rs 2,675 crore, down from Rs 3,182 crore a year ago. However, retail acquisitions surged, with SR issuance at Rs 1,713 crore in Q1 compared to just Rs 496 crore a year earlier — a threefold jump that provides a glimmer of hope against the decline in corporate SRs. Recovery remained robust at Rs 14,046 crore in Q1FY26, against Rs 46,621 crore for the whole of FY25. Restructuring continued to be the dominant resolution strategy, accounting for 40 per cent Y-o-Y in recovery in Q1, followed by settlement at 26 per cent and asset sales at 34 per cent, the association added.
