MUMBAI: The National Asset Reconstruction Company (NARCL) or a bad bank has received all the approvals operations commence, and a total of 38 NPA accounts for Rs worth 82 845 crore have been identified to be transferred to NARCL initially, State Bank of India Chairman Dinesh Khara said on Friday.
Transfer 38 accounts emphasize will happen gradually, with banks agreed to transfer 15 NPA accounts for worth Rs 50,000 crore in the first phase in March 2022, said Khara.
“In phase one, about 15 (stress) combine accounts for Rs 50,000 crore is expected to be transferred to NARCL.
We try to have this account is transferred in this financial year after completing all the necessary processes,” Khara told reporters.
He said India Debt Resolution Company Ltd.
(IDRCL), which will manage the assets of stress and engage professional market and turnaround expert, has also received all necessary regulatory approvals.
Finance Minister Nirmala Sitharaman in his 2021-22 Budget speech had announced that the government intends to set up a bad bank as part of the resolution of bad loans worth around Rs 2 lakh crore in the banking system.
When asked about the pool of assets emphasize lower than the initial amount, SBI Managing Director (emphasizing asset resolution group) J Swaminathan said that Rs 2 lakh crore was previously identified universe and some accounts have got completed over a period of one year.
He said Rs 83,000 crore worth of accounts which emphasizes joint loan forum (JLF) has met and took the decision to transfer to NARCL.
“To account remaining, the process is still in a phased manner and this will happen over the next year.
At this time, the target is to transfer at least the initial set of 15 accounts combine to Rs 50,000 crore,” said Swaminathan.
Khara said that while the public sector banks have take a majority stake in NARCL, IDRCL will majorly owned by private banks, SBI, Union Bank of India and Bank of India has taken a 13.27 percent stake each in NARCL.
Punjab National Bank has also acquired a near 12 percent stake in the bank bad.
He said the two companies have each board in place.
While NARCL will be managed by Padma Kumar Nair, IDRCL will be led by Manish Makharia.
Describe the setting, Khara said that NARCL would acquire and aggregate accounts that identified the NPA of the bank, while IDRCL , under an exclusive arrangement, will handle the debt settlement process.
this exclusive arrangement will fit in the space ling coup defined in debt management agreement concluded between the two entities, he said.
These settings are a principal-agent and the final approval and ownership for the resolution will lie with NARCL as principal.
IDRCL expected to bring superior resolution techniques, preserving and displaying the value of brownfield assets and attract domestic and foreign investors and also AIFS, said Khara.
“This will maximize value for all stakeholders.
It is also expected to free up bandwidth as well as capital for the bankers of the loan, which can be utilized more profitably,” he said.
NARCL will try to identify and assets obtained at 15:.
85 cash and receipts security SR (SR) SR There will be issued in favor of the lender to transfer and will be secured by government guarantees unique for their face value, he said in September last year, the government has announced to provide.
guarantees worth Rs 30,600 crore for the reception of a security issued by NARCL.
this guarantee is valid for five years.
Swaminathan further said post emphasize the transfer of assets from banks to NARCL, a trust level of the account will be established for each account, and the resolution of the debt will be handled by IDRCL.
Bad Bank accepts approval to start operations
