MONEY
SBI-led panel to list out new bad loan accounts for transfer to NARCL
- IBJ Bureau
- Dec 13, 2024
A committee headed by State Bank of India (SBI) Chairman C S Setty will prepare a fresh list of bad loan accounts for transfer to the National Asset Reconstruction Company Limited (NARCL), the Finance Ministry has said. The move will improve coordination among banks and put resolution of stressed assets on the fast track.
According to a statement issued by the ministry after a review meeting held by Financial Services Secretary M Nagaraju, NARCL has acquired 22 loan accounts amounting to Rs 95,711 crore for quick resolutions.
“Additionally, 28 accounts with an exposure of Rs 1.28 lakh crore were resolved by banks, subsequent to the NARCL making the offers, reflecting the indirect impact of NARCL’s presence in settling successfully pursuing recovery through other resolution mechanisms,” it has added.
NARCL, popularly known as “bad bank”, was set up in 2021 to resolve stressed assets above Rs 500 crore each.
To improve the resolution process, banks have been instructed to closely monitor the top 20 NCLT (National Company Law Tribunal) cases at the managing director level, with senior officials, not below the rank of general manager, required to attend proceedings. Banks have also been urged to minimise procedural delays and refrain from seeking unnecessary adjournments.
On the lack of real-time information sharing with financial creditors about applications filed by operational creditors, which has often caused coordination challenges, the Ministry of corporate affairs has said a plan already in place to develop an integrated portal will help keep banks informed about all proceedings. This will further enhance transparency and coordination in the resolution process.
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