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‘Banks to transfer 15 NPAs worth Rs. 50,000 cr. to NARCL’

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admin February 1, 2022
Updated 2022/02/01 at 2:51 PM

Banks have agreed to transfer 15 non-performing assets (NPAs) totaling Rs. 50,000 crore to the National Asset Reconstruction Company Ltd. (NARCL), a “bad bank” set up to assist with the issue, by the end of the current fiscal year.

At a press conference, SBI chairman Dinesh Khara said that a total of 38 accounts worth Rs. 82,845 crore have been identified for transfer to NARCL. However, the transfer will take place in stages,

Under Phase I, about 15 accounts worth Rs 50,335 crore are projected to be transferred in the current financial year, on or before March 31, he added.

Mr. Khara said that NARCL and the India Debt Resolution Company Ltd. (IDRCL) had acquired all the necessary clearances, including from the RBI, and that both entities were ready to begin operations.

The agreement states that NARCL would buy and aggregate the identified NPA accounts from the banks, while IDRCL would conduct the debt resolution process under an exclusive agreement.

As the principal, NARCL will have ultimate approval and ownership of the resolution. This arrangement will also comply with the SARFAESI Act’s rules as well as the Reserve Bank’s outsourcing standards.

 

Source: The Hindu

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