NARCL's offer prices lower than the liquidation value, say bankers

PSBs say this is the reason for slow progress of NPA sale

Offers made by the National Asset Reconstruction Co Ltd (NARCL) are lower than the liquidation value of the stressed assets in most cases, leading to slow progress in such loan acquisitions, bankers said.

NARCL was incorporated in 2021 with a majority stake held by public sector banks (PSBs) and Canara Bank being the sponsor lender.  

Over the past few weeks, Finance Minister Nirmala Sitharaman highlighted the slow progress and called for greater coordination between banks to expedite the on-boarding of stressed accounts. Last week, Canara Bank Chief General Manager P Santhosh was deputed to lead NARCL