Bad Bank

Union Bank of India on Friday said it has identified eight troubled accounts worth Rs 3,000 crore to be sold to the national bad bank NARCL this fiscal. The lender has more than doubled its net income at Rs 3,236 crore in the June 2023 quarter on improved asset quality and recoveries. The city-based bank had already sold three accounts worth Rs 900 crore last fiscal to the national bad bank at a recovery of 33 per cent. We have sort of identified as many as 42 troubled accounts with an outstanding of Rs 10,000 crore to be sold to the National Asset Reconstruction Company (NARCL). Of these, we hope to sell at least eight of them to that central government-owned bad bank this fiscal, A Manimekhalai, the chief executive and managing director of the public sector lender, told reporters at the bank's post-earnings presser here. Union Bank was one of the first lenders to sell its NPAs to NARCL in the first lot of the bad bank's such transactions. The bank had recovered Rs 20,000 crore f

Before injecting fresh funds, the govt needs to take non-performing debt related to tourism, real estate and other troubled industries off banks' books

The banks will now be able to rely on government guarantees on the stop security receipts (SRs) issued by the NARCL during the liquidation proceedings

Submits highest net present value bid of Rs 5,555 cr; process may complete by early FY24

Jaypee Infratech deal expected to close by early Nov

The NARCL will have the right to match any counteroffers, as the lenders have put the debt on the block

The govt reportedly said that it was keen on National Asset Reconstruction Company of India Ltd (NARCL) starting its operation

In July, NARCL had proposed to take distressed assets of 17 firms worth Rs 93,249 crore including included five firms of the Future Group

In a bid to attract experienced talent, the National Asset Reconstruction Co Ltd (NARCL) has increased the total remuneration of its chief executive, Natarajan Sundar to Rs 1.7 crore

In September last year, the government had announced a guarantee worth Rs 30,600 crore to security receipts issued by NARCL. The guarantee will be valid for five years

NARCL is a special purpose asset reconstruction company for taking over the large value NPA accounts (above Rs 500 crore) from banks.

NARCL is a public sector entity and will have to follow a competitive bidding process for these assets using the Swiss Challenge method.

The cross-country evidence suggests that if the logistical and financial challenges are carefully navigated, experiments of centralised bad bank can have more hits than misses: RBI article

By current assessment, lenders have a total of 38 accounts involving aggregate loans of Rs 83,845 cr, which have been identified for transfer, says Dinesh Kumar Khara

Over years, the two institutions will become agents of uncertainty as the government tries to make them work to avoid adverse criticism.

Analysts expect the 'bad bank' to improve the balance sheet of banks, and aid incremental cash flow. However, a delayed resolution may dent the asset's value over time

On the weekly basis, the benchmark indices gained, thus taking their winning run to the fourth straight week

The long overdue facilitation via NARCL comes at a time when banks' appetite for credit needs to be supported, as the economy turns a corner

NARCL: Another brick in the wall; not too different from other ARCs

Having several routes for NPA resolution has both advantages and disadvantages as the decision will finally be taken by the banks

A media report said the FM is expected to make announcements about a proposal to set up a bad bank