NARCL acquires Rs 21,000 crore of stressed loans till March 2023

In January this year, Jaypee Infratech became the first large stressed account to be transferred to NARCL by lenders led by IDBI Bank. The company was among the 12 large accounts referred by the Reserve Bank of India (RBI) to the National Company Law tribunal (NCLT) in 2017.

The total exposure of all the banks to Jaypee Infratech was over Rs 9,000 crore and IDBI Bank’s exposure stood at Rs 3,750 crore.

NARCL, through its resolution agent, India Debt Resolution Company Ltd. (IDRCL), will focus on the resolution of the accounts acquired and is in constant dialogue with the lenders for the new acquisitions, which activity is expected to increase in FY24, the release said.

The setting up of the bad bank was announced by Finance Minister Nirmala Sitharaman in the Budget 2021-22. It acquires assets on a 15:85 ratio of cash and security receipts (SRs). SRs, which are issued in favour of the transferring lenders, are secured by government guarantee for its face value.

IDRCL is a service company which manages the asset and engages market professionals and turnaround experts.