ARCs see first drop in assets under management in Q1

Assets under management of asset reconstruction companies (ARCs) have declined due to fewer loan defaults and reduced corporate lending. In the June quarter, AUM fell by Rs 2,632 crore, with outstanding security receipts dropping from Rs 1.4 lakh crore in March to Rs 1.37 lakh crore in June. Crisil projects a further shrinkage this fiscal year.