'14 assets to be taken over by NARC'

In the phase one of bad loans resolution by the Bad Bank, as announced by the Finance Minister Nirmala Sitharaman in her Budget 2021-22 speech, fourteen stressed assets worth Rs 50,000 crore have been identified to be taken over by the National Asset Reconstruction Company ( NARC), as per the Finance Ministry official. 

Delays in due diligence, fulfilling of legal formalities and other procedural tasks like the process of calculating the fair value led to the failure in meeting the deadline of March 31, he said. According to him, another two months will be needed by NARC to take over the assets for resolution.

“The due diligence of some of these assets has been done. After this they will be put through SWISS challenge. In case, no bidder gets successful in the challenge, then the asset will be transferred to NARC. This process will take two months,” the official said. He stated the fourteen assets belong to both private banks and public sector banks while refusing to disclose the names of these assets.

On the demand for asset sale in the market, the official said,” once we run the process, only then we will get to know about the demand.” Meanwhile, on the privatisation of IDBI Bank, the official said, “if the investors show interest then the government may offload its full stake in IDBI in one go.”