Shriram Capital applies for Asset Reconstruction Company licence with RBI

The ARC will focus more on the retail loans, except mocro finance loans, in terms of acquiring, said said Umesh Revankar, Executive Vice Chairman of Shriram Finance

Shriram Capital has applied for the Asset Reconstruction Company (ARC) licence with the Reserve Bank of India (RBI), said Umesh Revankar, Executive Vice Chairman of Shriram Finance during a press conference on November 7.

"Shriram Capital submitted application to commence ARC business with the RBI," Revankar said.

He further added that the upcoming ARC will be 100 percent subsidiary of Shriram Capital.

The ARC will focus more on the retail loans, except micro finance loans, in terms of acquiring.

This is because, Revankar added that in retail segment there is no one, who have the reach, network and capability of collections and the company is trying to build that specialisation.

Initially, the company once gets the licence will have a roadmap and numbers, he added.

On the management of ARC front, revankar during the conference said that the company is trying to build inhouse team.

"Reasonably, we have large team size to identify from today and I can put them their and make it successful," Revankar said.

Adding to this, on the sidelines of the conference he said the company have already identified the persons for the ARC, internally.