New Delhi, April 4 -- Asset reconstruction companies (ARCs) are expected to witness steady growth in assets under management (AUM) in FY27, driven by rising stress in MSME and retail loan segments amid ongoing geopolitical tensions in West Asia.

MSME Stress to Drive ARC Growth

Experts indicate that the ongoing conflict involving the United States, Israel, and Iran is likely to adversely impact MSMEs, particularly those exposed to global trade routes such as the Strait of Hormuz, reported Business Standard.

Disruptions in trade, coupled with volatility in commodity prices, are expected to weaken balance sheets of smaller businesses, thereby increasing distressed assets available for resolution by ARCs.

Retail and Unsecured Loans Add Mo...