Arcil's New Frontier in Loan Recovery

Mumbai: Arcil, the country's oldest bad loan company and now IPO-bound, is setting a new course towards retail loans as corporate NPAs diminish. In a bold move, the company is leveraging technology to streamline the recovery process, offering a digital platform for defaulting retail borrowers to submit settlement offers and receive instant acceptance.

Technology-Driven Recovery

Arcil's strategic pivot includes deploying data analytics and geo-tracking to enhance recovery efficiency, alongside introducing QR code-based and UPI payment solutions. This shift not only aims at improving recovery rates but also at reducing the company's reliance on acquiring bad assets, marking a significant overhaul in its business model.

Expanding Market Reach

With retail loan stress witnessing a CAGR of 14.8%, Arcil is expanding its footprint into semi-urban and rural areas. The company is in talks with small finance banks and NBFC-MFIs to acquire retail and SME loan portfolios, targeting the concentrated stress in these regions.

Sustaining Corporate Focus

Despite the shift towards retail, Arcil continues to target mid-sized stressed accounts in sectors like commercial real estate, where resolution timelines are shorter. However, the overall corporate recovery pipeline has seen a reduction, reflecting the changing dynamics in the financial sector.