Bad bank can be only a warehouse of bad assets, says Siby Antony, BFSI News, ET BFSI

Antony has been working in the ARC sector for the last two decades. He was heading Edelweiss ARC and now is the Chairman, ARC Association of India. In an interview with ETBFSI he explained different aspects of the bad bank…

He believes “Bad bank will be a warehouse of bad assets. If the objective of a bad bank will be to aggregate the debt and hand it over to ARC and AIF it will work. Because debt aggregating is still a problem in ARC the reasons being different banks have different provision coverage and many more such issues.” he said.

Antony also narrated the crux of the issues pertaining to asset reconstruction companies (ARCs). Such as why are banks unable to find resolution despite there being 28 ARCs? What are the major challenges that ARCs face? What has the Association of ARCs asked the RBI?

Antony also sees a surge in cases in the National Company Law Tribunals after March once the Insolvency and Bankruptcy Code suspension is revoked.

Also read: Raghuram Rajan’s formula has led to over 50% recovery for ARCs