By Dr K Srinivasa Rao With the Reserve Bank of India granting licence to National Asset Reconstruction Company Ltd (NARCL), October 4 marks a historic development in the financial sector. NARCL is set up to declutter banks from part of the burden of non-performing assets (NPAs). Unlike the other existing private sector asset reconstruction companies […]
The soaring NPAs, despite several interventions like Dispute Resolution Tribunals, Asset Reconstruction Companies and Insolvency and Bankruptcy Code, now get another pill
He noted that the idea of a bad bank is to buy bad loans and other illiquid holdings of another financial institution and by transferring such bad loans to bad bank, the original institution can clear its balance sheet.
