DELHI: The banking secretary Vivek Joshi is set to hold a meeting on Friday with the public sector banks (PSBs), including the State Bank of India (SBI), along with officials from the National Asset Reconstruction Company Limited (NARCL) and the India Debt Resolution Company Limited (IDRCL).
The meeting, chaired by Department of Financial Services secretary Vivek Joshi, will review the performance of the bad bank and discuss long-pending cases under the Insolvency and Bankruptcy Code (IBC), according to official sources.
NARCL was established in July 2021 as a "bad bank" to address India's growing non-performing assets (NPAs) issue. As a joint venture between public sector banks and other financial institutions, NARCL plays a crucial role in resolving distressed assets, revitalizing the banking sector, and fostering economic growth.
One of NARCL's primary functions is to acquire and resolve NPAs from banks and financial institutions, allowing them to cleanse their balance sheets and focus on core banking activities. The acquired distressed assets are then strategically resolved through restructuring, turnaround, or sale to potential investors, maximizing their value and facilitating efficient resolution.
According to information provided in the Rajya Sabha, ten public sector banks (PSBs) in India have transferred bad loans worth Rs 11,617 crore to the National Asset Reconstruction Company Ltd (NARCL) by the end of November. State Bank of India (SBI) accounted for the largest amount of debt transferred, with Rs 4,508 crore, followed by Punjab National Bank with Rs 2,138 crore, Canara Bank with Rs 1,858 crore, and Union Bank with Rs 1,831 crore.
Several other PSBs have also transferred non-performing assets (NPAs) to NARCL. Bank of Maharashtra assigned Rs 796 crore, while Indian Bank transferred Rs 233 crore. Bank of Baroda transferred Rs 114 crore, Central Bank of India Rs 70 crore, Bank of India Rs 49 crore, and Indian Overseas Bank Rs 20 crore. Collectively, these ten PSBs had NPAs amounting to Rs 3.77 lakh crore as of September 30, 2023.
The Minister of State for Finance, Bhagwat Karad, informed that as of November 30, 2023, NARCL has recovered Rs 16.64 crore.