Asset reconstruction companies (ARCs) in India are facing pressure from large banks to confirm they have no connections with the defaulting borrower companies if bankruptcy follows any auctioning to a new company. The banks want ARCs that buy sticky loans to sign an indemnity clause and must also confirm they have no direct or indirect connections with the company that owes the loan. Banks are also stockpiling on a proposal which asks that even in full cash deals, ARCs must share newly-recovered payouts with the banks. These demands have put off many ARCs.from Banking/Finance-Industry-Economic Times https://ift.tt/YMTLa2c
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