NEW DELHI : Padmakumar M Nair, Chief General Manager of Stressed Assets Resolution Group at SBI, will head the National Asset Reconstruction Company Ltd, the proposed bad bank for taking over stressed assets of lenders, according to sources. "An Asset Reconstruction Company Limited and Asset Management Company would be set up to consolidate and take over the existing stressed debt," she had said in the Budget speech. National Asset Reconstruction Company Ltd (NARCL) will pay up to 15 per cent of the agreed value for the loans in cash and the remaining 85 per cent would be government-guaranteed security receipts. The government accepted the proposal and decided to go for asset reconstruction company (ARC) and asset management company (AMC) model for this. Since then, while ARCs have grown in number and size, their potential for resolving stressed assets is yet to be realised fully.

Source: Mint May 11, 2021 14:37 UTC