The government had entrusted the Indian Banks’ Association with the task of setting up a bad bank. According to reports, the company has appointed State Bank of India’s (SBI) stressed assets expert PM Nair as Managing Director. Other directors on the board are IBA chief executive Sunil Mehta, SBI deputy managing director SS Nair and Canara Bank chief general manager Ajit Krishnan Nair.
According to sources, early last month, the Indian Banks’ Association (IBA) submitted an application to the Reserve Bank of India (RBI) seeking a license to set up the Rs 6,000-crore National Asset Reconstruction Company Limited (NARCL) or bad bank. was demanded. NARCL was incorporated in July 2021 in Mumbai.
Sources told news agency PTI that the company has approached the RBI after raising an initial capital of Rs 100 crore and completing other legal formalities and sought a license to start the asset reconstruction business.
Sitharaman had said that the bad bank will manage and dispose of assets to alternative investment funds and other potential investors.
read all breaking news, breaking news And coronavirus news Here
.