The next session is on Leveraging analytics for asset resolution and managing NPAs: 5.20 PM: Aniruddha Sen, Partner, Trilegal on IBC: "There are some gaps with the IBC but on paper, it's a good law. The biggest issue is the judicial system. The availability of tribunals and justices to apply the law correctly. There is a case for more. Overall, IBC is a case of good law but it has been frustrated by the fact that its novel, which is why I think it has led to slightly less than expected performance." 5.25 PM: Pallav Mohapatra, CEO, Arcil, on NPAs: "After 2014, the volume of NPAs went up in the large corporate sector, now almost all things have stabilised. The fresh NPAs coming out from the large corporate sector will be few now. But the stress grew in the Covid time because of the lockdown in MSE and retail sector. There might be one more outburst of NPAs. Whether it will be as bad as in the 2010 scenario, there is no definite answer, but I feel there will be one more flare-up of NPAs in the coming future."

Asset Reconstruction Company of India (Arcil) joined the race to acquire debt of Chenani-Nashri Tunnelway Ltd (CNTL), offering 27 per cent recovery to private lender IndusInd Bank NSE 0.80 %, people with knowledge of the matter told ET. Arcil’s Rs 208-Crore full cash offer for IndusInd Bank’s Rs 752-Crore unsecured debt in the country’s longest road tunnel in Udhampur in Jammu and Kashmir has triggered a Swiss Challenge auction, they said. Under this method, interested parties can bid for the debt by quoting a better price, but Arcil will get an opportunity to match the best bid and close the deal. The private bank has invited expression of interest from potential buyers to be submitted on Thursday, December 16, according to a notice issued by the bank on its website on Tuesday.

IRP Pinakin Shah has admitted Rs 7,534.6 Crore in claims from 27 financial creditors including HDFC Bank, Axis Bank, RBL, Aditya Birla Finance, IndusInd Bank, Life Insurance Corporation, State Bank of India, Punjab National Bank, Punjab & Sind Bank and Karnataka Bank. In October, Shah received 16 expressions of interest (EOIs) from applicants including Varde Capital-backed Aditya Birla Asset Reconstruction Company (ARC) in partnership with Easygo Textiles, and Avenue Capital-backed Asset Reconstruction Company of India Ltd (Arcil) under the bankruptcy process. Edelweiss Alternative Assets Advisors Ltd, Asset Reconstruction Company of India, Prudent ARC, Ludhiana-based Trident Ltd, Bengaluru -based Himaksinka Ventures, Punjab-based Lotus Hometextile, Mumbai-based Indocount Industries and Nitin Spinners were also in the race.

Indian Overseas Bank, a financial creditor to Srinagar Banihal Expressway (subsidiary of the company) has assigned their financial assistance granted it, together with all underlying securities, rights, title and interest in respect there of to Asset Reconstruction Company (India) (ARCIL) on October 13, 2021 along with the application filed under Sec.7 of Insolvency and Bankruptcy Code 2016 to National Law Tribunal, Hyderabad Bench against the company for a claim of amount of Rs 236.64 Crore under the Corporate Guarantee, Ramky Infra said in results notes.

KSK Mahanadi has caught the fancy of ARCs who are confident of realising value as the company has a power purchase agreement. Aditya Birla ARC owns 20% of the debt which it purchased from Axis Bank, Bank of Baroda and Punjab National Bank over 18 months. Asset Reconstruction Company of India (Arcil), ASREC (India) Ltd and CFM ARC also have acquired small loans from other lenders. SBI and Union Bank of India’s 27% share in the company's total debt gives them clout in the resolution process. But selling it to ARCs will enable them to report higher earnings in a quarter when loan growth is sluggish.