New Delhi, March 9 -- Avenue Capital-backed Asset Reconstruction Company (India) Ltd, or ARCIL, has appointed Phanindranath Kakarla as its new chief executive officer and managing director, the company said in a statement on Monday.

He succeeds Pallav Mohapatra, who is stepping down from his role after a tenure of five years. Mohapatra took over the role in March 2021, after retiring as the MD and CEO of Central Bank of India in February 2021.

The appointment is a part of the ARCIL's planned leadership succession transition, it said.

"With his [Kakarla's] leadership experience and deep understanding of financial services and asset resolution, we are confident he will lead ARCIL into its next phase of growth and value creation. This is part of the succession plan as envisaged by the Board over the last year," said Narayanan Subramaniam, Chairman, ARCIL.

Kakarla, who is currently serving as the company's President, joined ARCIL in April 2025. He has worked closely with ACRIL's leadership team on strategic initiatives, business expansion and operational transformation during the time and brings expertise in acquisition and resolution of stressed assets.

Prior to that, he worked for more than a decade at Edelweiss Financial Services, where he held senior roles and oversaw key strategic functions spanning finance, operations, corporate services and business transformation across the group.

"ARCIL has played a pioneering role in shaping India's asset reconstruction industry and remains a strategic partner for banks and financial institutions. My focus will be to build on ARCIL's leadership position and deliver long term value for all stakeholders," said Kakarla.

Asset Reconstruction Company (India) Ltd is majority owned by US-based stressed assets and private credit investment firm Avenue Capital. It is India's oldest asset reconstruction company having started in 2002. It operates across multiple branches in India and has built strong capabilities in corporate, SME and retail asset resolution.

Avenue Capital Group holds a 69.7% stake as of December 2024. Avenue Capital first bought 27% of the company in late 2018 and has increased its stake in stages since then.

State Bank of India owns a tad less than 20% stake in ARCIL while Singapore sovereign wealth fund GIC owns a 5% stake. The other shareholders include Karnataka Bank, South Indian Bank and Federal Bank.

Published by HT Digital Content Services with permission from VC Circle.