Banking News

Neeta Mukerji resigns as CEO of ACRE, country’s largest bad bank


Neeta Mukerji, chief executive officer of Assets Care & Reconstruction Enterprise, has resigned, said people aware of the development.

She joined as CEO of ACRE, an asset reconstruction company backed by global fund Ares SSG Capital, in November 2020. She was appointed for a term of five years.

Neeta Mukerji did not respond to ET’s email requesting a comment.

Before joining ACRE, she was chief credit officer at RBL Bank and, prior to that, with Asset Reconstruction Company of India (Arcil) as president.

“Mukerji did not inform about her plans. The board is in the process of identifying her successor,” said a senior official from the ARC.

ACRE’s asset under management (AUM) rose from FY2019 onwards, with the management focussing on acquisition of large corporate accounts, said a statement issued by Crisil, a rating company, in February this year.“Its AUM rose to Rs 10,810 crore as of December 31, 2022, from Rs 3,099 crore as of March 31, 2018,” the rating company said.Ares SSG Capital hold a 49% stake in ACRE as of December 31, 2022, while other shareholders are Axis Bank (13.6%), Punjab National Bank (8.3%), Tourism Finance Corporation of India (3.8%), Indea Capital (3.4%), Bank of Baroda (2.6%), LIC (2%) and other corporate bodies (17%).

ACRE’s earnings are linked to its ability to recover and resolve the underlying distressed assets that it acquires from lenders. It posted net profit of Rs 105 crore in fiscal year 2022 as against Rs 87 crore a year ago.

The ARC acquires loans from banks and finance companies by paying in a combination of cash and security receipts (SR).

“The overall SR redemption ratio was 43% as of December 31, 2022; this is supported by the company’s ability to resolve in a relatively shorter time frame given that most of the stressed assets acquired were post-fiscal 2018,” Crisil said.


Source link