NEW DELHI: Banking secretary Vivek Joshi will hold a meeting with 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) on Friday.
The meeting, chaired by the Department of Financial Services (DFS) secretary, will review the performance of the bad bank and discuss long-pending cases under the Insolvency and Bankruptcy Code (IBC), as per official sources.
NARCL was established in July 2021 as a ‘bad bank’ to address growing non-performing assets (NPAs) issue. As a joint venture between public sector banks (PSBs) and other financial institutions, NARCL plays a crucial role in resolving distressed assets, revitalising the banking sector.
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 resolved through restructuring, turnaround, or sale to potential investors, maximising their
value and facilitating efficient resolution.
As per information provided in the Rajya Sabha, 10 PSBs have transferred bad loans worth Rs 11,617 crore to the NARCL by November. 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 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.