About Us

Asset Reconstruction Company (India) Limited (Arcil) is India's first and largest asset reconstruction company, to commence
business of resolution of Non-Performing Assets (NPAs) upon acquisition from Indian banks and financial institutions. It is
sponsored by prominent banks and financial institutions namely State Bank of India (SBI), IDBI Bank Limited (IDBI), ICICI
Bank Limited (ICICI) and Punjab National Bank (PNB). Arcil has its registered office at Mumbai, Maharashtra. Arcil has acquired
portfolio from more than 65 banks and financial institutions since inception. Arcil also forayed into reconstruction of retail
assets through its division 'Arms' which is currently spread across 18 locations in India.
Arcil was incorporated as a public limited company in 2002 and in pursuance of Section 3 under the Securitisation Act, 2002, it
holds a certificate of registration issued by the Reserve Bank of India (RBI) and operates with powers conferred under the
Securitisation Act, 2002. As the premier ARC, Arcil played a pioneering role in setting standards for the industry in India. It
commenced business by acquiring its first tranche of financial assets on 31
st
December, 2003. In the first decade, Arcil has
acquired more than 48,000 worth of NPAs from the Indian banking system. In the process, it has also empowered the Indian
banking system to grow faster and remain stronger in a challenging economic environment.
Arcil is presently managed by a motivated team of highly experienced professionals, headed by Mr. P. Rudran, the Managing
Director and CEO
Vision And Mission Vision
Be a major contributor to the Indian economy by enhancing velocity of capital.
Mission
Maximise value through innovative resolution.
Establish fair and transparent business practices.
Facilitate development of market for distressed debt
Role
Unlocking and recycling capital for the banking system and the economy
The primary objective of Arcil is to expedite recovery of the amounts locked in NPLs of lenders and thereby recycling capital.
Arcil thus, provides relief to the banking system by managing NPLs and help them concentrate on core banking activities
shareholder's value.
Creating a vibrant market for distressed debt assets / securities in India offering a trading
platform for Lenders
Arcil has made successful efforts in funneling investment from both domestic and international players for funding these
acquisitions of distressed assets, followed by showcasing them to prospective buyers. This has initiated creation of a secondary
market of distressed assets/securities in the country besides hastening their resolution. These efforts have the potential of
leading the country's distressed debt market to international standards.

Background
The genesis of asset reconstruction business in India owes its origin to enactment of the Securitisation Act, 2002. Prior to
promulgation of the Securitisation Act, 2002, banks and financial institutions had no option but to enforce their security
interests through the court process, which was extremely time consuming. There was also no provision in any other law in
respect of enforcement of hypothecation, though hypothecation was one of the major security interests by the banks and
financial Institutions in India. It was in this backdrop that the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Ordinance, 2002 was passed on June 21, 2002 which was enacted by the parliament in
December 2002 and became the Securitisation Act, 2002.
Acheivement
As the pioneer in the asset reconstruction space, Arcil not only participated in the process of framing the guidelines but also
helped define the contours of the industry, claiming many of the firsts. Arcil has meaningfully engaged the stakeholders in the
asset reconstruction domain and established a business model conducive to Indian ecology.
The leader
As the leader in this genre of business, Arcil undertook significant efforts in market seeding, creating awareness and
acquainting banks and financial institutions with the concept and business model, attracting capital to this new class of asset,
et all. Arcil has facilitated development of a business environment, which today has attracted many players to set up business
in this domain. It has meaningfully engaged the investors through dialogue and dissemination of information. This is expected
to lead the flow of new capital for the asset class in the near future. Some of the significant initiatives of Arcil in this context
are:
Participation in the process of framing regulatory guidelines for the acquisition, resolution and valuation of NPL and operating
guidelines for conducting asset reconstruction business in India
Rationalization of stamp duty payable on acquisition of NPL from sellers in several States in the country thereby reducing the
transaction costs, which is a sine-qua-non for business viability (all major States have provided for remission in stamp duty to
notional levels)
Setting up a valuation framework in line with international best practices
Creation of a unique transaction model taking into account conflicting interests of sellers doubling as investors(in the absence of
new money) in the Special Purpose Vehicles (SPV) with Arcil as trustee for the investors in the trusts, by sharing upside from the
resolution
Setting up a fund involving third party investors (not being sellers doubling as investors)
Establishment of a framework for rating of security receipts(SRs) with underlying NPLs and the security interest - a first of its kind
in India


Holistic Solutions Provider
Arcil commenced its operations with acquisitions of medium and large NPLs pertaining to corporate borrowers. These borrower
accounts, typically offer opportunities for innovative financial and business restructuring, capturing the concern value or even
growth opportunities in core business by hiving off or capturing value pockets in a diversified business. The treatment for
resolution in this segment resembles the approach akin to private equity business model.
Soon after commencement of business, Arcil realized that a large number of NPLs relating to small and medium enterprises,
including self-employed business ventures too existed in the financial system. Arcil then broadened its operations by including
these NPLs under its focus. The resolution of such NPLs typically involves settlement or sale of collaterals, often through the
process as prescribed under the Securitisation Act, 2002 or otherwise.
Leveraging its rights and the powers conferred under the Securitisation Act, 2002 and other enabling provisions, Arcil usually
deploys several strategies, often simultaneously, for resolution of the NPLs. Arcil has innovatively developed a approach for
resolution of this class of assets by engaging and repackaging interests of all stakeholders, including the borrower. In this area,
Arcil demonstrates complex transaction structuring and value enhancement capabilities.
Arcil provides customized risk-mitigated transaction structures for acquisition of NPLs from banks and financial institutions to
facilitate sell-down. Increasingly, banks are looking for a cash exit from NPLs as against staying invested by doubling as
investors in SRs.
To enable transaction closure with the sellers which prefer clean exit for cash, Arcil has augmented its capital base
substantially. Also, Arcil has demonstrated fund raising capabilities by having a successful fund raising program for investment
in SRs, with several large domestic and global investors participating in them; a "first-of-its-kind" achievement in India. These
funds are raised on need basis whenever there is a requirement for additional funds to be invested in SRs to give cash exit to
the selling banks and financial institutions.
Shareholders
Arcil's sponsors, as defined under the Securitisation Act, 2002, (shareholders holding 10% or more equity stake) are State Bank
of India, IDBI Bank Ltd., ICICI Bank Ltd. and Punjab National Bank





















1
wholly owned subsidiary of Government of Singapore Investment
Corporation (Ventures) Pte Ltd.
Committees
Executive Committee
Audit Committee
Trustee Committee
Remuneration Committee
Capital & Debt Raising Committee

Directors
The Board of Directors of Arcil comprises eminent personalities in the fields of banking, finance, management,
accountancy and taxation who possess considerable expertise and experience in those fields.

Brief biographies introduce Arcil's Directors and the rich experience they bring to the team:

Milestones
Asset Reconstruction Company (India) Limited (Arcil) is India's first and largest asset reconstruction company in
the country to commence business of resolution of Non-Performing Assets (NPAs) upon acquisition from Indian
banks and financial institutions. It is sponsored by prominent banks and financial institutions namely State Bank
of India (SBI), IDBI Bank Limited (IDBI), ICICI Bank Limited (ICICI) and Punjab National Bank (PNB). Arcil is
having its Registered Office at Mumbai, Maharashtra. Arcil has acquired portfolio from more than 65 banks and
financial institutions since inception. Arcil also forayed into reconstruction of retail assets through its division
'Arms' which is currently spread across 18 locations in India
Arcil was incorporated as a public limited company in 2002 and in pursuance of Section 3 of the Securitisation
Act, 2002, it holds a certificate of registration issued by the Reserve Bank of India (RBI) and operates under
powers conferred under the Securitisation Act, 2002. As the premier ARC, Arcil played a pioneering role in setting
standards for the industry in India. It commenced business by acquiring its first tranche of financial assets on
31stDecember, 2003. In the first decade, Arcil has acquired more than ` 48,000 worth of NPAs from the Indian
banking system. In the process, it has also empowered the Indian banking system to grow faster and remain
stronger in a challenging economic environment.
Arcil is presently managed by a motivated team of highly experienced professionals, headed by Mr. P. Rudran,
the Managing Director and CEO.