04 December, 2020

"Whoever Is In The Market First, Sells Faster"

Arcil (India) Ltd’s chairman and MD Vinayak Bahuguna on how a bankruptcy law would help towards monetising loans.

Photo by Amit Haralkar
"Whoever Is In The Market First, Sells Faster"

In the current scenario of bulging NPAs, banks will be seeking to clean up their book and monetise defaulters’ assets, as mandated by an RBI directive. The real worth will be realised only if the NPA cases come early enough, says Arcil (India) Ltd’s chairman and MD Vinayak Bahuguna in an interview with Lola Nayar. Excerpts:

What is the role of your company in debt restructuring?

The role is clearly spelt out by law and we get to deal and work with non-performing loans of the banking sector. We become trading partners of banks and the banking system. If at any point there are banks that carry NPLs, loans which have turned bad, and they wish to cash it or sell it, they look at the ARCs. Then there is a process of negotiation, which starts with an auction. The banks put these assets for sale where different ARCs come to bid. If the prices match, a deal is consummated. Then these loans are transferred from the banks to the ARCs. So we become the owners of the loans. We become the counter parties to...



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