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In view of the mounting bad loans of banks, Ficci has suggested setting up of a National Asset Management Company (NAMCO) to take over stressed assets from the banking system for effective recovery and rehabilitation.
"It is imperative that the Government and RBI should help establish NAMCO to address the challenge posed by stressed assets in the banking system. A pro-active and preventive approach is much desirable if we have to ensure speedy revival of the economy," Ficci President Sidharth Birla said.
As per Ficci's suggestion, NAMCO should be established as a 'special purpose' asset reconstruction company (ARC) with sponsorship of the government, with initial capitalisation of up to Rs 5,000 crore that will allow it to build up a sizeable portfolio of stressed assets.
Moreover, it should focus on large ticket stressed assets mainly in Infrastructure, Power, Steel and Telecom sectors to be transferred from the banking system quickly.
Besides, private sector should hold majority stake (51%) in the company, while the government must encourage public sector banks to participate in equity of NAMCO up to 49%.
Moreover, NAMCO should issue security receipts (SRs) of up to 12 years maturity period for long term assets acquired by it.
