As Managing Director and Chief Executive Officer (CEO) of Edelweiss Asset Reconstruction Company Limited, the largest asset reconstruction company (ARC) in the country managing around Rs 470 billion worth of assets, Raj Kumar Bansal is currently at the helm of affairs, leading the ARC in acquisition of distressed assets, resolution and restructuring, and recovery from stressed assets. A chartered accountant by training, his major strength and experience lie in stressed asset resolution and handling several large stressed groups/accounts.
With over 33 years of experience in the banking sector, covering both developmental banking and commercial banking, Bansal has acted as a team leader in a variety of functional areas related to the sector, such as corporate banking, project appraisal, corporate debt restructuring (CDR), retail banking, international banking, finance and accounts, resources, recovery, investments, treasury and operations.
Bansal believes that the current market size for distressed assets is quite large and is an opportunity for ARCs to step in. “Today, banks have non-performing assets worth Rs 10 trillion and other stressed assets of Rs 2 trillion. Banks are working towards the resolution of stressed assets through measures such as change in management, sale to strategic investors, one-time settlement with borrowers, and sale to ARCs. And ARCs are looking to leverage these opportunities,” he says.
Prior to his current position, Bansal has worked with IDBI Bank as executive director for over eight years. Here, he was responsible for handling large corporate credit, and was also deputed as CEO to StockHolding Corporation of India Limited, IDBI Mutual Fund (now renamed Principal Mutual Fund) and IDBI Federal Life Insurance. He was also appointed chairman of Asset Reconstruction Company (India) Limited (ARCIL) by IDBI Bank and has worked as chairman of the CDR Empowered Group.
With extensive expertise in the banking sector, Bansal has been a member of several top management committees across functional areas such as credit, policy, system, product and process, human resources, internal advisory, fraud review, audit committee of executives, investment committee, etc. He has also served as a member of the Indian Banks Association’s Standing Committee on Retail Banking.
On the personal front, he and his wife have two children, a son and a daughter, and a three-year-old grandson. Both his children are doctors by profession while his wife is in the coaching profession.