Non-performing home loans worth R100 crore in queue for restructuring

The asset reconstruction major said that banks generally treat housing loans as safe as there is a secured asset,and unless and until they think that they wont be able to recover the money from the collateral they dont sell.

Both the public sector banks and the private sector banks are in discussions with us to sell such assets, added Rudran.

With an expected rise in NPAs across the banking sector in the financial year 2012-13,ARCIL is anticipating a sharp rise in the number and value of assets being sold to asset reconstruction companies.

The activity picks up in the third and fourth quarter and while the assets offered by banks to our industry stood at around Rs 6,600 crore last year,this year it is expected to cross Rs 10,000 crore mark, said Rudran.

ARCIL has total outstanding assets under management worth Rs 6,900 crore out of the industry total that ranges around Rs 10,000 crore.