MUMBAI: In a bid to clean up the balance sheets of banks and reduce bad loans, National Asset Reconstruction Company Limited (NARCL) has made a binding offer to acquire over R67,000 crore of distressed assets of 12 entities.
Sharing an update about NARCL’s progress, the Ministry of Finance said that there was significant progress in lowering Non- Performing Assets (NPAs) of banks. “Binding offers have been made in 12 accounts aggregating R67,090 crore while due diligence is underway in 22 accounts by NARCL,” said the Ministry of Finance in a tweet on Saturday.
“The progress is gathering pace and we expect good results in the coming months for this initiative to unburden the banks of managing some large NPAs,” it added. Registered with the RBI as an Asset Reconstruction Company under SARFAESI Act 2002, NARCL is an initiative to clean up legacy stressed assets in the Indian banking system.
According to RBI data, gross NPAs reached R7.73 lakh crore as of December 31, 2021. Set up on July 7, 2021, the NARCL seeks to help the banks to get rid of their bad loans. NPAs of Indian banks are expected to come down in coming years as NARCL plans to acquire a substantial chunk of distressed assets.