State Bank of India chairman Dinesh Khara on Friday said that all requisite approvals for setting up NARCL and IDRCL have been received. Public sector Banks will have a majority stake in the National Asset Reconstruction Company Limited (NARCL) while private banks will have a significant stake in India Debt Resolution Company Limited (IDRCL), Khara said.
In the initial phase, around 15 cases worth Rs 50,000 crore will be transferred to the proposed bad bank in this fiscal, Khara said. An estimated Rs 2 lakh crore worth of bad assets is planned to transfer to the Bad Bank.
A total of 38 accounts with Rs 83,000 crore outstanding in total have been identified for transfer so far but some of these accounts have been resolved already, Khara said.
Bad Bank was announced by Union Finance Minister Nirmala Sitharaman in the Union Budget last year. This entity will absorb the bad assets of banks enabling banks to clean up their books.
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