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ARCIL has acquired the stressed loan portfolio of Ujjivan SFB for Rs. 34 crore.

Banking & Finance | Dated: 06 Mar 2025

On March 3, 2025, Asset Reconstruction Company (India) Limited (ARCIL), based in Mumbai (Maharashtra) and supported by the Avenue Capital Group (USA) and the State Bank of India (SBI), acquired the non-performing microfinance loan portfolio of Ujjivan Small Finance Bank (SFB) from Bengaluru (Karnataka) for Rs. 34.26 crore. The total value of the loan portfolio was Rs. 365.5 crore.

🎯 Key Highlights:

  • - This transaction resulted in a recovery rate of about 9.39%, meaning the lender faced a loss of approximately 90%.

💡 Other Important Facts:

  • (i) ARCIL started the deal with its anchor bid, which led to a 'Swiss Challenge' auction for the loan portfolio.
  • (ii) Ujjivan SFB invited counterbids, offering a 5% higher bid than the anchor bid. However, no higher bids came in, and ARCIL's offer was accepted.
  • (iii) This sale is part of Ujjivan SFB's ongoing efforts to clean up its balance sheet and improve asset quality by reducing Non-Performing Assets (NPAs).

📚 Test Your Knowledge:

Who has recently acquired the stressed loan portfolio of Ujjivan SFB for Rs. 34 crore?

Correct Answer: ARCIL

🚀 Quick Recap: