New Delhi, July 10 -- Assets under management (AUM) of private asset reconstruction companies (ARCs), as measured by security receipts (SRs) outstanding, is expected to decline 4-6 per cent to Rs 1.05 lakh crore this fiscal after sliding 15 per cent last fiscal, according to a latest report by Crisil Ratings.

The rating agency said that the acquisition of stressed assets will continue to trend lower even as redemptions, which have improved in recent years, are likely to remain healthy, which will assist the ARCs.

Additionally, with the securitisation of NPAs potentially disrupting the industry's status quo, ARCs may have to seek alternative opportunities to drive growth and profitability.

The Crisil Ratings further added that with the ...