I am pleased to launch inaugural publication dedicated to securitisation and asset reconstruction, ‘Securitisation in India: The story so far and the way forward’. The publication highlights current status and future prospects of India’s securitisation and asset reconstruction industry.

Overhang of the policy framework and regulatory influences have sizeable impact on asset reconstruction business. The impeding issues are likely to gain a supportive stance from the authorities in the larger interest of imparting robustness and growth momentum to this extremely complex business sector. The entry of players is likely to hasten this process.

With a view to garner strength and propel future growth financing, the banking sector is likely to take more proactive steps to unlock value as well as capital from the impaired assets to meet the impending Basel II norms. Thus, the asset reconstruction business is likely to witness sizeable growth in the next few years. In the last few years, the banking sector has registered spectacular performance, especially in retail credit, which is perceived as a significant growth driver. Going by the growth rate of retail credit, the size of impaired assets in this segment is likely to show up in the near future. Arcil is aware of the challenge and opportunities offered by this segment and are forging a suitable business strategy for handling this category of business.

Arcil’s objective remains to build a strong community to support the economic growth of the country by quarantining the natural waste of the financial sector and deal with them proactively. This publication is a sincere attempt towards achieving this goal.

I would like to reiterate that in the light of the current economic boom, Non-performing assets must be seen as a challenge for the financial system rather than a problem. I am confident that the publication,‘Securitisation in India: The story so far and the way forward’, will provide a well-researched information on Indian securitisation and asset reconstruction industry. I look forward to receiving your feedback and suggestions.

S. Khasnobis
Managing Director & CEO
Asset Reconstruction Company (India) Limited