Ten public sector banks transferred Rs 11,617 crore worth of bad loans to the National Asset Reconstruction Company Ltd (NARCL) by November end, the Rajya Sabha was informed on Tuesday.
Of this, State Bank of India assigned the largest amount of debt worth Rs 4,508 crore, followed by Punjab National Bank which transferred Rs 2,138 crore, Canara Bank that assigned Rs 1,858 crore of debt and Union Bank that transferred Rs 1,831 crore.
Other PSBs such as Bank of Maharashtra has assigned Rs 796 crore of debt to NARCL while Indian Bank has transferred Rs 233 crore. Other PSBs that have transferred NPAs to NARCL include Bank of Baroda (Rs 114 crore), Central Bank of India (Rs 70 crore), Bank of India (Rs 49 crore) and Indian Overseas Bank (Rs 20 crore).
In all, these 10 PSBs had NPAs amounting to Rs 3.77 lakh crore as on September 30, 2023.
Minister of State for finance Bhagwat Karad said the NARCL has recovered Rs 16.64 crore, as on November 30, 2023. NARCL is a bad bank that buys NPAs from banks to help clean their balancesheet.
“As per inputs received from NARCL, it has acquired first such loan in January, 2023,” Karad said, adding that further, recovery in NPA 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.
Further, corporate insolvency resolution process under the Insolvency and Bankruptcy Code is going on in some of the accounts acquired by NARCL, he said, adding that recovery will be effected in these accounts after the resolution plans get approved by the National Company Law Tribunal.
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