Near-resolution assets may not go to bad bank amid Covid-19 pandemic

ARC expected to be functional next month

Stressed assets close to being resolved and for which a one-time settlement is under process may not be transferred to the new bad bank, which is expected to be functional next month.

Where there is a resolution likely in one or two months, and the order of the National Company Law Tribunal has been pronounced, such cases may not be considered.

There is no point transferring such assets to the National Asset Reconstruction Company (NARC) and resuming the process, said a senior executive with State Bank of India (SBI).

Seconding this view, another senior public sector banker said transferring near-resolution assets to the