FM Nirmala Sitharaman announces over Rs 30,000 cr guarantee for bad bank

Banks have identified bad loans worth Rs 90,000 crore to be transferred to NARCL in the initial phase, says Finance Secretary Debasish Panda

Nirmala Sitharaman
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Banks have recovered over Rs 5 trn in the last 6 financial years, says FM Nirmala Sitharaman (Photo: PTI)

BS Web Team
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.

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First Published: Sep 16 2021 | 5:10 PM IST

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