Asset Reconstruction Company (India) Ltd (Arcil) has acquired Ujjivan Small Finance Bank’s non-performing and written-off loans from its microfinance portfolio aggregating ₹365.5 crore for ₹34.26 crore.
This translates into a steep 94 per cent haircut for Ujjivan SFB. The bank carries an overall provision of 66.51 per cent on the above pool of microfinance loans.
The portfolio, comprising a substantial number of microfinance accounts, was acquired through a Swiss Challenge auction process, per an Arcil statement.
Pallav Mohapatra, MD & CEO, Arcil, his company is confident of leveraging its expertise in recoveries to unlock value from the acquired portfolio while supporting financial stability in the microfinance sector.