PSU Banks NPA: 10 public sector banks have transferred their bad loans worth Rs 11,617 crore to National Asset Reconstruction Company Limited (NARCL). This loan had been declared non-performing asset (NPA). This NPA was given to NARCL between January and November. NARCL was formed to clear the bad loans, it is also known as bad bank
NARCL has recovered Rs 16.64 crore
Minister of State for Finance Bhagwat Karad, while answering a question in the Rajya Sabha, said that the bad bank is trying to restructure these loans. Till November 30, NARCL has recovered Rs 16.64 crore. He said that recovery is a continuous process in such accounts. Time up to five years is given for the recovery process, it also includes government guarantee
Talks are going on with many corporates
Apart from this, NARCL is also in talks with many corporates within the ambit of Insolvency and Bankruptcy Code. The recovery plan can be approved only after the resolution plan is accepted by the Company Law Tribunal, this process takes a long time. span>
What is a bad bank
The Finance Ministry had established NARCL in July, 2021. It was formed under the Companies Act. It helps in cleaning the bad loans (NPAs) and balance sheets of banks. With its help, banks can reduce their NPA burden. The share of public sector banks in this bad bank is 51 percent."text-align: justify;">Which banks transferred bad loans
SBI has been at the forefront in transferring bad loans to NARCL. It transferred NPA of Rs 4508 crore, followed by PNB of Rs 2138 crore and Canara Bank transferred NPA of Rs 1858 crore to NARCL. During this period, Union Bank of India transferred NPA of Rs 1831 crore. The bad loan worth Rs. crore was handed over to NARCL. Apart from this, Bank of Baroda, Bank of Maharashtra, Central Bank, Indian Bank and Indian Overseas Bank have also handed over their NPA to it. According to Finance Ministry data, the NPA of these 10 banks had reached Rs 3.65 lakh crore by September 30, 2023 NARCL had announced this Friday that it has acquired two SREI companies. These include two companies named SREI Equipment and SREI Infrastructure Finance. This NPA worth Rs 32,700 crore may come back. For this, approval was taken from NCLT, Reserve Bank of India and Competition Commission of India. Read this also Get more latest business news updatesAcquired two companies of SREI