Utkarsh Small Finance Bank Completes Transfer of Unsecured Stressed MFI Loans Portfolio to Asset Reconstruction Companies

Utkarsh Small Finance Bank Ltd. has completed the transaction of transferring a portfolio of unsecured stressed MFI loans to Asset Reconstruction Companies (ARCs). The bank had previously informed about the approval of the Management Committee to proceed with the transfer of NPA and written-off accounts to ARCs. The transaction was completed after the Swiss Challenge Method, with Asset Reconstruction company India Limited (ARCIL) and Shriram Asset Reconstruction Private Limited (SARC) as the buyers. The total number of accounts transferred in Pool 1 to ARCIL is 2,92,030 with an aggregate principal outstanding of ₹ 1,016.24 crore, and in Pool 2 to SARC is 1,36,832 with an aggregate principal outstanding of ₹ 474.75 crore.