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India sets up bad bank to reduce debt burden, free up lenders

National Asset Reconstruction Company Ltd's paid-up capital is Rs 74.6 crore

banks, asset reconstruction company, NARCL

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2 min read Last Updated : Jul 13 2021 | 11:25 AM IST

India formally set up a bad bank as part of the nation’s ongoing efforts to remove one of the world’s largest piles of soured debt from the balance sheet of financiers and accelerate lending.

The firm was registered as the National Asset Reconstruction Company Ltd. on July 7 with Padmakumar Madhavan Nair as the managing director, according to filings with the Registrar of Companies, where firms must register before becoming operational.

NARCL’s paid-up capital is Rs 74.6 crore ($10 million), according to the filing. Nair previously worked at the State Bank of India where he handled stressed assets resolution.

Sunil

Topics : Reserve Bank of India Nirmala Sitharaman Indian banking system Bad loans Non performing assets Indian Banks Association Insolvency and Bankruptcy Code prompt corrective action

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