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ARCs earning from SR redemption up 15.8% in FY25 on better recovery
The redemption of SRs, broadly representing recovery, improved substantially as the economy picked up and amount locked up in stressed sectors like power, infrastructure got resolved, according to the Association of ARCs in India.
ARCs had redeemed SRs worth ₹37,364 crore in FY24 and ₹27,356 crore in FY23. SRs are financial instruments issued to qualified buyers as consideration for purchasing distressed assets from banks or financial institutions.
While the redemption of receipts increased in FY25, the SRs issued for bad loans acquired by ARCs declined during the period. They issued SRs amounting ₹37,511 crore in FY25, down from ₹37,864 crore in FY24 and ₹41,406 crore in FY23.
With stable gross non-performing assets (NPAs) of the banking system below 3 per cent, fresh ARC business remained almost stagnant. The pace of issuance of security receipts issued for acquisition of NPAs remained muted. The redemption outpaced acquisition due to improved recovery and collections. For the next year too, the situation is likely to continue, said Hari Hara Mishra, CEO, Association of ARCs in India in a statement.
Also, with the redemption of SRs being higher than fresh SRs issued, the outstanding SRs declined to ₹1.34 trillion in FY25 from ₹1.39 trillion in FY24.
The asset sale & settlement contributed only 1/3rd of recovery, the remaining 2/3rd came through Insolvency and Bankruptcy Code (IBC), and in-house restructuring and other measures, the association said.
The total dues acquired by ARCs cumulatively rose to ₹16.14 trillion, including those from Stressed Asset Stabilisation Fund amounting to ₹4.22 trillion transferred to an ARC during FY25, it added. The total dues acquired were ₹10.2 trillion at the end of FY24 and ₹8.48 trillion in FY23.
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United News of India
a day ago
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Indian Express
2 days ago
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The company now operates through a diversified network of special purpose vehicles (SPVs) across critical growth sectors such as power, roads, metro rail, airports, and defence. During FY25 and 1QFY26, Reliance Infra made significant progress in resolving legacy financial obligations arising from corporate guarantees and other liabilities. Reliance Power stocks saw a 121 per cent rally from the 52-week low, signalling renewed investor interest. However, promoter holding in Reliance Infra remains modest at just 19.05 per cent, reflecting continued capital dilution and financial restructuring. Reliance Infra and Reliance Power — the two major listed entities — have a market capitalisation of Rs 14,262 crore and Rs 24,690 crore respectively now. At its peak in 2008 before various companies collapsed, the group had a market capitalisation of Rs 3.45 lakh crore. Reacting to the ED raids, Reliance Infra and Reliance Power said in similarly-worded statements that the ED's actions 'have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders', and that the companies have no business or financial linkage to Reliance Communications and Reliance Home Finance, which are purportedly at the centre of the ED's action. In the aerospace sector, the group had earlier formed Dassault Reliance Aerospace Ltd (DRAL) in 2017, a joint venture with France's Dassault Aviation under the offset obligations of the Rafale fighter jet deal. While DRAL did deliver aerostructure components—such as cockpit assemblies—for Falcon 2000 jets, its role remained modest, accounting for only a small part of the total offset value. Plans are now afoot to deepen the partnership between Dassault and the Reliance Group, with plans to manufacture the former's business jets in India. Dassault and Reliance Group announced last month that DRAL will be setting up a final assembly line (FAL) for manufacturing the Falcon 2000 jets at Nagpur. The first made-in-India Falcon 2000 jet is expected to be ready by 2028. This will be the first instance of Dassault manufacturing the popular business jet outside France. The made-in-India jets will cater to rising business jet demand in India and international markets, according to the partners. At Mihan, Nagpur, DRAL has a manufacturing facility for making various sections of Dassault's best-selling business executive jet–the Falcon 2000. Since delivering its first Falcon 2000 front section in 2019, DRAL has assembled over 100 major sub-sections for the Falcon 2000. While Dassault and the Reliance Group have not spelt out the capacity of the Falcon 2000 production facility at Nagpur, but sources in the know indicated that it could be up to 24 aircraft a year. This would be the first-ever instance of a foreign aircraft manufacturer setting up an FAL in India for fixed-wing civilian aircraft. Over time, however, Dassault's newer defence partnerships have increasingly leaned toward other Indian players like Tata, signalling a reduced reliance on the Anil Ambani group in this space. The group recently announced big plans in the ammunition segment also. In June 2025, Reliance Defence formed a strategic partnership with Diehl Defence of Germany to manufacture Vulcano 155 mm precision-guided artillery shells domestically. In May 2025, the group signed an agreement with Rheinmetall AG, another major German defence manufacturer to supply explosives and propellants for medium and large-calibre ammunition. Despite years of financial turbulence, the group has shown signs of resilience and reinvention. Though much of the original empire lies dismantled, a leaner, more focused Anil Ambani Group is trying to chart a comeback—anchored in energy, infrastructure, and defence, yet still shadowed by its legacy of debt and regulatory scrutiny. Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More
