What do Asset Reconstruction Companies do with financial

Q: Answer-What do Asset Reconstruction Companies do with financial assets?

Asset reconstruction companies ARC is a special type of financial institution that buys the Non-Performing Assets NPAs or bad assets from banks and financial institutions and work to recover the loans from the bad assetsNPAs bought. ARCs can acquire secured assets from banks by paying in cash or by issuing securities called security receipts SRs.

assets?

A Convert them into securities Correct Answer Incorrect Answer

B Sell them in the market Correct Answer Incorrect Answer

C Write them off Correct Answer Incorrect Answer

D Provision them as per IRAC norms Correct Answer Incorrect Answer

E All of the above Correct Answer Incorrect Answer

Solution

Asset reconstruction companies (ARC) is a special type of financial institution that buys the Non-Performing Assets (NPAs) or bad assets from banks and financial institutions and work to recover the loans from the bad assets/NPAs bought. ARCs can acquire secured assets from banks by paying in cash or by issuing securities called security receipts (SRs).

Practice Next

Relevant for Exams:

PNB SO Credit Officer Scale 1

Thank You for posting your query. Please check your email for further guidance

Please Register/Login to Download Question