The share of cash transitions in Crisil’s Rs. 30,000 crores model SR portfolio increased to 40% from 36% in FY 22. The trend is expected to continue.
“Another reason for the increased recovery rate is that participation of ARCs in retail segment is likely to more than double to 15-18% next fiscal,” said Sushant Sarode, Director, CRISIL Ratings. “This benefits as recovery for retail pools starts within a few months of acquisition, accelerating the cumulative recovery. In contrast, recovery for corporate assets depends on the resolution strategy and can stretch to 5-8 years.”