The government had entrusted Indian Banks’ Association to set up a bad bank. The company has hired P M Nair, a stressed assets expert from State Bank of India (SBI), as the managing director, according to reports. The other directors on the board are IBA Chief Executive Sunil Mehta, SBI Deputy Managing Director S S Nair and Canara Bank’s Chief General Manager Ajit Krishnan Nair.
Earlier last month, the Indian Banks’ Association (IBA) moved an application to the Reserve Bank of India (RBI) seeking licence to set up a Rs 6,000-crore National Asset Reconstruction Company Ltd (NARCL) or bad bank, according to sources. NARCL was incorporated in Mumbai in July 2021.
The company after mobilising an initial capital of Rs 100 crore and fulfilling other legal formalities has approached the RBI seeking licence to undertake asset reconstruction business, sources told news agency PTI.
The bad bank will manage and dispose the assets to alternative investment funds and other potential investors for eventual value realisation, Sitharaman had said.
Read all the Latest News, Breaking News and Coronavirus News here