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“CRISIL PREDICTS 16-18% RECOVERY RATE FOR ARCS BY MARCH 2025”
Why in the news?
- Crisil predicts ARCs will see a recovery rate increase to 16-18% by March 2025 due to improved residential real estate conditions.
- Recovery driven by demand, price appreciation, and regulatory amendments aiding resolution of stressed real estate projects.
source:geeksforgeeks
About Asset Reconstruction Companies (ARCs):
- Specialized financial institutions purchasing bank bad debts to recover debts or securities.
- Regulation: Registered under RBI and regulated by the SARFAESI Act, 2002.
- Supervision: Operate under RBI’s supervision and control.
- NPA Involvement: Handle Non-Performing Assets (NPAs) by asset reconstruction, securitisation, or both.
- Rights Transfer: All lender (bank) rights related to the debt transfer to the ARC.
| About CRISIL:
● Full Form: Credit Rating Information Services of India Limited ● Founded: 1987 by ICICI and UTI ● Parent Company: S&P Global, an American corporation ● Nature: Indian consulting firm offering ratings, analysis, risk, and policy advice. ● First Credit Rating Body: In India, established in 1988. ● Services:Helps creditors, borrowers, lenders, and authorities make informed financial decisions. ● Mission: Provide critical views, actionable insights, and positive solutions. Associated Article: |
