ABHUIT LELE
Mumbai, 23 February
The assets under management (AUMs) of asset reconstruction companies (ARCs) are expected to grow at 8 to 9 per cent to touch the 1.5 trillion mark by March 2024, according to the CRISIL-Assocham report. The report added, AUMs may expand at a slower pace of 5 to 8 per cent in the next financial year (FY25), where the asset base could reach the 1.6 trillion level. AUM stood at X1.38 trillion at the end of March 2023. In FY23, the industry growth was at 17 per cent, driven by a large transaction of stressed assets being acquired from a bank by an ARC. However, excluding the same, growth was modest at 7 per cent. The report said the growth in the future would largely be driven by higher acquisitions, though capped by quicker resolutions expected in retail assets.
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