Banks have recovered over Rs 5 trn in the last 6 financial years, says FM Nirmala Sitharaman (Photo: PTI)
Finance Minister Nirmala Sitharaman on Thursday announced a formal government guarantee on the securities receipts that the planned ‘bad bank’ will issue to banks as it takes on non-performing assets from their books. The government guarantee will be Rs 30,600 crore, she said.
The Union Cabinet on Wednesday cleared a proposal to provide government guarantee to security receipts issued by the National Asset Reconstruction Company (NARCL) as part of resolution of bad loans, Sitharaman said at a press briefing in New Delhi. NARCL proposes to acquire stressed assets of about Rs 2 trillion in phases within extant regulations of RBI.
First Published: Sep 16 2021 | 5:10 PM IST