KOLKATA: UCO Bank is toying with the possibility to tap an asset reconstruction company (ARC), including the government-backed bad loan aggregator National Asset Reconstruction Company, to handle its exposure in ailing Srei group entities, which are going through a resolution process under the Insolvency and Bankruptcy Code (IBC).
According to Soma Sankara Prasad, MD & CEO, UCO Bank, if any ARC is interested in Srei then banks could get their money upfront instead of having to wait for the resolution process to be complete.
“We have the joint lenders’ meeting this Monday and we will check with other lenders in the consortium what they think about it (going to an ARC). This is one option that we can explore. If any of the ARCs is interested in Srei then we can get cash upfront immediately,” Prasad said while addressing the press on Friday.
