Asset Reconstruction Company India Limited (Arcil) is India’s first Asset Reconstruction Company registered with the Reserve Bank of India (RBI) to conduct securitization and asset reconstruction. Incorporated as a public limited company on February 11, 2002, Arcil operates in India providing asset reconstruction services primarily by acquiring non-performing financial assets (NPAs) from Indian banks and financial institutions.
Its core activity is the purchase of stressed assets from lenders and their securitization via trusts created for this purpose. In FY2004–05, Arcil set up various securitization trusts and acquired dues from banks/financial institutions, including purchases from 24 sellers and acquisitions such as 366 assets with total dues of Rs 15,365 crore for Rs 3,549 crore (acquisition price).
Arcil continued scaling its NPA acquisition platform in subsequent years. In FY2006–07, it acquired 316 NPA accounts from 23 banks/financial institutions with total dues of Rs 5,955 crore for an aggregate acquisition value of Rs 2,233 crore, establishing first-time relationships with seven sellers. In FY2007–08, it acquired assets from 40 sellers with total dues of Rs 10,664 crore and an aggregate SR value of Rs 2,516 crore, while expanding business relationships across 51 Indian banks and financial institutions and acquiring NPAs with total dues of Rs 37,795 crore.
In FY2008–09, Arcil broadened its scope beyond corporate/bank NPAs by starting to buy non-performing retail loans, including home loans, and launched this offering under a new division called “Arms.”
