Indian ARCs forecast a significant improvement in redemption rates for stressed retail assets, reaching 69-71% next year.

Credit rating agency Crisil forecasts that Asset Reconstruction Companies (ARCs) in India will see a 600 basis points improvement in the redemption rate of security receipts (SRs) for stressed retail assets, reaching 69-71% in the next fiscal year. This improvement is driven by strong recoveries from newer accounts and solid settlement rates across both secured and unsecured asset classes. Regulatory changes have also eased recovery processes, particularly for smaller loans.