123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Asset Reconstruction Company For India

By Author: Arnav Desai
Total Articles: 9

Slowing economic growth and crippling abilities of companies to repay debts have resulted in a lot of debts being converted to bad debts. This has, in turn, caused a huge burden on the banks which must go through the turmoil of accumulating such bad debts.

The expectant beneficiary in all this turmoil is the Asset Reconstruction company in India. It is the largest buyer of such failed ventures. Bad debts in the banking industry have crossed an astounding Rs 1 trillion and are still on the rise. The banks now try to liquidate such bad assets so that the bank burdens are been reduced.

The key question here is: what results in these bad loans? You can attribute a lot of these to the dynamic state of banking operations or environment, coupled with any stringent regulations in place.

To prevent piling up of several bad loans, there could be two likely workaround options. First option being where banks can handle the bad / unwanted loans on their own through provision of various perks, certain fiscal or exceptional accounting benefits, legislative powers, or so on. The other option can be about handling of the unwanted loans by a particular apex body, seeking help from the relevant firm/s.

There is quite a few benefits of utilizing the Asset Reconstruction Company or (ARC) approach. They include all advantaged been made available for any centralized process, ARC’s being the specialized agency, have NPA resolution as the main activity, the banks are in benefit as they can concentrate on their regular day to day banking operations without worrying about the unwanted assets and finally ARCs acting as a central agency, acquires bad loans from the banks by getting potential investors who wish to purchase such debts.

ARCs also help in building industry expertise in loan resolving and restructuring management. It also plays a crucial role in the evolution of capital markets through secondary assets.

An organization fully capable of undertaking such non-performing assets is JMFL. The asset reconstruction company has experts who have dealt in bad debts for quite some time and have an innate understanding of handling such delicate and complex assets and the potential investors who wish to buy such assets. Their sound advice too has created profit for investors who deal in such matters.

Total Views: 63Word Count: 384See All articles From Author

Investing / Finance Articles

1. How To Sell Online – Tips For Boutiques
Author: Melanie Schwartz

2. Measure Your Business Performance With The Best Bookkeeping Services In Hertfordshire
Author: Shareen Khan

3. What Is An Sme Loan? Its Meaning And Benefits
Author: Manish Damani

4. Importance Of Dividends In The Share Market Benefits
Author: Shraddha

5. Bad Credit Auto Laon
Author: Prairie Nation

6. Xcel Accounting Provides Auditing Solutions
Author: Aniket Vichare

7. 10-step Guide To The House Mortgage Loan Process
Author: Loansa Assit

8. Useful Tips To Keep Your Refrigerator Efficient!
Author: Meenal Wahi

9. Free Mcx Tips , Accurate Free Trading Tips Research Based Advisory
Author: kamaljeet singh

10. Are You A Professional With An Irregular Income? We Have Got 5 Easy Financial Planning Tips Just For
Author: MintWalk

11. How Do Analyst Prepare Equity Research Report
Author: abhishek sawant

12. Merits & Demerits Of Accounts Receivable Loan For Small Business
Author: Stephen Perl

13. What Is Bonus Stock ?
Author: Mahendra Rajput

14. Collaborate With Professionals For Small Business Accounting Services
Author: Shareen Khan

15. Delve Into Your Forex Trading Strategies
Author: Adam Davis

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: