WHY IN NEWS?
The National Asset Reconstruction Company (NARC) has finally become a legal entity registered with the Registrar of Companies (RoC) Mumbai.
- NARC is also called as bad bank is finally here in India. It is considered as a one-stop solution for banking systems stressed assets menace.
- Under the first phase, 22 stressed accounts amounting to Rs 89,000 cr has been identified to transfer to NARC.
- With this, Rs 2 lakh cr worth of bad loans accounts will be transferred to newly incorporated bad bank.
- SBI is expected to transfer bad loans worth Rs 20,000cr.
- PNB will transfer about Rs 8,000cr stressed assets while,
- Union Bank of India will transfer about Rs 7,800cr NPAs to NARCL.