Banks to shift ₹89,000-crore NPAs to NARCL

Banks have identified about 22 bad loans worth ₹89,000 crore to be transferred to the National Asset Reconstruction Company Ltd. (NARCL) in the initial phase, according to Union Bank of India MD and CEO Rajkiran Rai G.

Setting up of NARCL, the proposed bad bank for taking over stressed assets of lenders, was announced in the Budget for 2021-22.

“The Indian Banks’ Association (IBA) has asked lead banks to call for meetings and keep an approval ready so that as soon as the ARC is formed, they can start the process,” Mr. Rai, who is also the chairman of IBA, told reporters.

“I think the assessment in the first phase was of 22 accounts of about ₹89,000 crore for the system.”