In a bid to clean up their books, Banks will be transferring 15 stressed assets aggregating about Rs. 50,000 crore by March-end 2022 to the National Asset Reconstruction Company Ltd (NARCL), according to State Bank of India (SBI) Chairman Dinesh Kumar Khara.
The aforementioned assets (above Rs. 500 crore each) are part of the 38 identified stressed assets aggregating Rs. 83,000 crore that Banks will be transferring to NARCL.
Overall, chunky stressed assets aggregating about Rs. 1.50 lakh crore are expected to be transferred to NARCL.
NARCL, which has already been set up by banks, will aggregate and consolidate select stressed assets in the financial system for their subsequent resolution. Public sector banks are holding majority stake in the ARC.
Along with NARCL, a service company/operational entity, India Debt Resolution Company Ltd (IDRCL), has also been floated for resolving these stressed assets. Private sector banks are holding majority stake in the DRC.
Khara said, “The transfer (of stressed assets) will happen in a phased manner. In phase one, about 15 accounts aggregating to about Rs. 50,000 crore are expected to be transferred to NARCL. We are trying to have these accounts transferred within this financial year after completing all the required processes.”