The NARCL has been successful in the acquisition of just six companies since its inception in January 2022 to house banking-sector advances that had converted into bad loans, , NARCL, IDRCL, Bad Banks
The NARCL has concluded the acquisition of just six companies since it started operations in January 2022 to house banking-sector advances that had gone sour. Dharani Sugars and SPML Infra and Parenteral Drugs were acquired by the bad bank in this financial year, following Jaypee Infratech, SSA International and Helios Photovoltaic that were acquired last fiscal.
Under the twin structure, National Asset Reconstruction Company Ltd (NARCL) — the state-backed bad bank — acquires and aggregates bad loans from lenders while another organisation, India Debt Resolution Company Ltd (IDRCL), acting parallelly as a private sector entity, focuses on resolution of the non-performing assets for enhancing the value of the loans and finding a better suitor for the troubled borrowing company.
Under the twin structure, National Asset Reconstruction Company Ltd (NARCL) — the state-backed bad bank — acquires and aggregates bad loans from lenders while another organisation, India Debt Resolution Company Ltd (IDRCL), acting parallelly as a private sector entity, focuses on resolution of the non-performing assets for enhancing the value of the loans and finding a better suitor for the troubled borrowing company.
Sitharaman was apprised of the progress achieved and took note of the approvals and permissions received for both NARCL and India Debt Resolution Company Ltd (IDRCL) from the government and regulators.