State Bank of India's Padmakumar M Nair named as CEO of proposed bad bank

Padmakumar M Nair of State Bank of India (SBI) will be the chief executive of National Asset Reconstruction Company (NARCL), a proposed entity for taking over bad loans of lenders, predominantly public sector banks. NARC, also called a 'bad' bank, is expected to be operational in June 2021.
 
Nair, a career banker with SBI, has been chief general manager (CGM) in the stressed assets resolution group (SARG) of the bank since April 2020.
 
Prior to his elevation in 2020, he worked as general manager in the SARG from 2017. He has worked mostly in the corporate banking segment in the last two decades.

 

Banking sources said, besides formation and establishing the structure of the company, he and his team would be involved in framing rules for making offers and acquisition of bad assets from banks.
 
The Indian Banks' Association (IBA) is spearheading work on the finer details of the proposed 'bad' bank. The equity structure or holding of lenders, including NBFCs such as PFC and REC, in the bad bank is also being worked out by the IBA. An HR consultancy firm is helping the IBA with the selection of team members.