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Got all approvals to set up bad bank: SBI chairman
By current assessment, lenders have a total of 38 accounts involving aggregate loans of Rs 83,845 cr, which have been identified for transfer, says Dinesh Kumar Khara
Lenders will transfer 15 large ticket stress loans worth Rs 50,000 crore in the first tranche to the National Asset Reconstruction Company (NARCL) by the end of March 2022 for resolution.
By current assessment, lenders have a total of 38 accounts involving aggregate loans of Rs 83,845 crore, which have been identified for transfer, Dinesh Kumar Khara, Chairman, State Bank of India said in Mumbai on Friday.
This is scaled down target to compared to Rs 2 trillion to be given to NARCL, also called as bad bank.
Asked about downward revision in the estimates, Khara said some of accounts which were listed for transfer have been resolved and accounts declared as fraud are not included the list of accounts to be transferred. Plus, how much would be acquired up by NARCL is moving target, based on the resolutions b banks, SBI chairman said.
NARCL and Indian Debt Resolution Company Ltd (IDRCL) have received approval including from Reserve Bank of India and both entities are ready commence the business.
Lenders would get upfront 15 per cent cash and 85 per cent in form of security receipts backed by guarantee from the government of India.
The approval for NARCL has been granted under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.
State-owned lenders including State Bank of India (SBI), Union Bank of India, Punjab National Bank (PNB) and Indian Bank are taking majority stake in the NARCL. The private sector lenders will hold majority stake in debt resolution company.
SBI has sent its two officials on secondment - Padmakumar Madhavan Nair, as managing director and chief executive NARCL and Manish Makharia to head IDRCL.
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