The cumulative redemption ratio for security receipts (SRs) issued by asset reconstruction companies (ARCs) has improved to 44% in 2019 from a mere 3% in 2015 because of a higher proportion of cash transactions, quicker debt aggregation, and better economic value of non performing assets (NPAs), rating agency Crisil said in a new study.
Resolution through the new insolvency and bankruptcy code has also quickened resolution process, the study said.
Higher share of cash transactions, better-quality assets, and quicker implementation of resolution has meant that the majority of SRs (61%) are higher rated versus 40% in 2016.
