Daijiworld Media Network – Mangalore (NR)
Mangalore, Jan 24: A seminar on 'Unlocking capital from non-performing loans' was arranged by ARCIL (Asset Reconstruction Company India Limited) at the Karnataka Bank's premises here at Kodialbail on Wednesday January 23 and inaugurated by the Bank's chairman Ananthakrishna.
Delivering the keynote address, Ananthakrishna dwelt on the scenario prior to the introduction of financial reforms and the introduction of income recognition concept. The enactment of SARFAESI Act is a right step towards recovery of non-performing assets. However, even the Securitization Act is not without roadblocks, he observed.
Ananthakrishna, chairman, Karnataka Bank Limited, inaugurating the Seminar on Unlocking Capital from Non-performing Loans organized by Asset Reconstruction Company India Limited. Amarnath, Sourav Ghosh, president, Asset Recovery Company Limited, H M A Khan, general manager, Corporation Bank, P. Jayarama Bhat, chief general manager and G K Bhat, general manager, Karnataka Bank Limited, S Khasnobis, managing director and chief executive officer, ARCIL are also seen in the picture
The creation of ARCIL has brought about changes in the recovery scenario and is a breather for banks to a considerable extent, he said. He lauded the role of ARCIL which is creating a security receipt which is tradable, he pointed out.
ARCIL is trying to revitalize the economy, convert the non-performing assets of banks into performing assets. It is a nodal agency for resolution of non performing assets, unlocking the non performing assets thus creating a vibrant market and re-energizing the financial sector as such.
However, he felt that a reasonably better price may be offered by ARCIL to banks for the assets sold by banks. It should be ensured that the borrowers meet their contractual obligations promptly and ARCIL has a role to play here.
Financial discipline is the sine qua non for the economy of any country. Financial system should become vibrant within the framework of law. ARCIL should aim at making the market more alive, keeping the bankers happy while ensuring that the borrowers are not unhappy, he advised.
Sarvashri S. Khasnobis, managing director & chief executive officer, ARCIL, Saurav Ghosh, president, S K.Amarnath, ARCIL, P Jayarama Bhat, chief general manager, Karnataka Bank, H.M.A. Khan, general manager, Corporation Bank G K Bhat, N.S. Chakkera (general managers), Karnataka Bank and Amitha Trehan of ARCIL were present.