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IARC was founded by former SBI Chairman M.S. Verma and former Bank of America CEO Arun Duggal.

The current economic crisis will spawn a lot of distressed investing opportunities and IARC has raised money at the right time. International Asset Reconstruction Company Private Limited (IARC) has raised Rs 90 crore in the second round from investors. HDFC Bank Ltd, Tata Capital Limited, ICICI Bank Ltd, Standard Bank Plc and Netherlands Development Finance Company (FMO) have invested in the firm in this round. Other existing individual investors have also participated in this round of funding. IARC has raised the funds to augment the capital requirement in its asset reconstruction business.

IARC was formed by former State Bank of India Chairman and telecom regulator M.S. Verma and former Bank of America CEO Arun Duggal. City Union Bank, who holds 11%, was also one of the founding members along with Centurion Bank of Punjab, who had 29.41% stake. Centurion Bank was acquired by HDFC earlier this year, and its stake has now transferred to HDFC Bank.

IARC manages non-performing assets and is involved in acquisition, resolution and reconstruction of non-performing loans. IARC currently has assets worth Rs 1,500 crore under management. IARC focuses on corporate NPA segment, but it also acquires NPAs in the retail segment. 

"The Indian economy is at an inflexion point. Having seen significant credit growth in the last few years, the economy is witnessing a general slowdown. This overall slowdown coupled with tight liquidity conditions for weaker companies in certain industry sectors is expected to result in additional NPAs in the banking sector," said Birendra Kumar, MD & CEO of IARC.

Avendus Capital was the advisor on the deal.