PSBs transfer Rs 11k-cr bad loans to NARCL
National Asset Reconstruction Company Ltd (NARCL), a bad bank, buys NPAs from lenders
image for illustrative purpose
New Delhi: A total of 10 Public-Sector Banks (PSBs) transferred Non-Performing Assets (NPAs) of over Rs11,617 crore to NARCL between January and November this year, the Finance Ministry said on Tuesday.
In a written reply to a question in the Rajya Sabha, Minister of State (MoS) for Finance, Bhagwat Karad said the National Asset Reconstruction Company Ltd (NARCL) has recovered Rs16.64 crore as on November 30, 2023.
Karad said recovery in NPA accounts is an ongoing process, and security receipts issued to lenders by NARCL, backed by government guarantee, provide a five-year time window for effecting the recovery in such accounts.
“Further, corporate insolvency resolution process under the Insolvency and Bankruptcy Code is going on in some of the accounts acquired by NARCL. Recovery will be effected in these accounts after the resolution plans get approved by the National Company Law Tribunal (NCLT). In remaining accounts, NARCL has recovered Rs16.64 crore, as on 30.11.2023.”
NARCL is bad bank and buys NPAs, or bad loans, from lenders.
