By Aditya Raghunath
Investing.com – Indian Banks Association (IBA) Chairman Rajkiran Rai has said that Indian banks have identified a total of 22 accounts with a total outstanding of Rs 89,000 crore that will be transferred to the proposed bad bank or NARC.
NARCL stands for National Asset Reconstruction Company and was announced in the Union Budget for FY22 to take over a large part of the non-performing assets (NPAs) in the Indian banking system. It is expected to be funded by public sector banks (PSBs). It is estimated that 8% of their PSBs’ loan books are gross NPAs.
Rai, who is also the head of Union Bank of India Ltd (NS:) of India said, “What we have done is preliminary work to keep the ground ready so that when the ARC is registered, they can start the process.
We have broadly identified accounts where there are close to 100 percent provision and which are accounts above Rs 500 crore.”