ARC Acquisitions of Bad Loans Rise Sharply in FY25

Imagine banks have loans that people can't pay back.

Special companies called ARCs buy these bad loans.

In the past year, ARCs in India bought a lot more of these loans, because of a big deal involving an old fund.

While ARCs bought more loans overall, new deals stayed the same because banks are doing better, and don't have as many bad loans.

ARCs are getting better at recovering money from these loans, especially from things like power plants and infrastructure.

Most of the money recovered came through legal processes.