Ten public sector banks have assigned a total debt of Rs 11,617 crore to the National Asset Reconstruction Co. since the start of the calendar year until November 2023, according to Rajya Sabha responses provided by the finance ministry on Tuesday.
The recovery in non-performing assets accounts is an ongoing process, and security receipts issued to lenders by NARCL, backed by the government guarantee, provide a five-year time window for effecting the recovery in such accounts, said Minister of State for Finance Bhagwat Karad.
The Gross NPA of the ten banks amounted to Rs 3.65 lakh crore as on Sept. 30.
NARCL, better known as the 'bad bank', manages and disposes of the stressed assets of banks. Established in 2021, the bad bank acquired its first such loan in January 2023.
In some of the accounts assigned to NARCL, corporate insolvency resolution process under the Insolvency and Bankruptcy Code is also on-going, he said.
"...Recovery will be effected in these accounts after the resolution plans get approved by the National Company Law Tribunal. In remaining accounts, NARCL has recovered Rs 16.64 crore, as on 30.11.2023," Karad said.
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