Karnam Sanker, the chairman of the National Asset Reconstruction Company Ltd (NARCL), has quit. Going by reports, his exit has something to do with a proposal to merge NARCL with its “twin”, the India Debt Resolution Company Ltd (IDRCL).
NARCL, the so-called “bad bank”, was set up in July 2021 to buy legacy stressed loans from banks. It is an asset reconstruction company (ARC) that would buy the bad loans at a mutually agreed value and work to recover the debts or associated securities. IDRCL is an asset management company meant to work in tandem with NARCL to help clean