Moneyboxx Finance Ltd Executes ARC Transaction for NPA Asset Management, Improves Asset Quality Metrics
Moneyboxx Finance Ltd has executed an Asset Reconstruction Company (ARC) transaction for effective management and recovery of Non-Performing Assets (NPAs). The transaction, which involved the transfer of NPA and written-off assets amounting to INR 60.90 crore to an ARC trust, has resulted in significant improvement in the company’s asset quality metrics and collection efficiency. The ARC transaction, along with other strategic initiatives, has helped Moneyboxx manage the credit cycle and shift its business model towards secured lending and prime borrowers. The company has also established a dedicated collection department and strong legal recourse for delinquent borrowers, and is well-capitalized with a healthy CRAR and adequate liquidity.
Key Highlights
- Moneyboxx Finance Ltd executed an ARC transaction in September 2025 for effective management and recovery of NPA assets
- The transaction involved transfer of NPA and written-off assets amounting to INR 60.90 crore to an ARC trust with issue of security receipts (SRs) in the ratio of 15:85
- Post the transaction, asset quality metrics and collection efficiency have significantly improved
- The Company expects strong recovery from the ARC pool with focused collection efforts and legal recourse under the SARFAESI Act, 2002
- Moneyboxx has healthy capital position with CRAR of over 28%, adequate liquidity and strong asset quality metrics post this transaction