Information revealed in the Rajya Sabha on Tuesday disclosed that by the end of November, ten public sector banks had collectively transferred bad loans valued at Rs 11,617 crore to the National Asset Reconstruction Company Ltd (NARCL). Notably, State Bank of India topped the list by assigning a substantial Rs 4,508 crore in debt, followed by Punjab National Bank with Rs 2,138 crore, Canara Bank with Rs 1,858 crore, and Union Bank with Rs 1,831 crore transferred."
Bank of Maharashtra has allocated Rs 796 crore of debt to NARCL, while Indian Bank has transferred Rs 233 crore. Additionally, other PSBs, namely 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), have also shifted their NPAs to NARCL.
Collectively, these 10 PSBs held NPAs amounting to Rs 3.77 lakh crore as of September 30, 2023.
Bhagwat Karad, the Minister of State for Finance, reported that as of November 30, 2023, NARCL has recovered Rs 16.64 crore. NARCL, functioning as a bad bank to cleanse banks' balance sheets, began acquiring such loans from January 2023. Karad emphasized the ongoing nature of the recovery process in NPA accounts. The security receipts issued to lenders by NARCL, backed by government guarantee, provide a five-year window for the recovery of such accounts.
Karad further mentioned that some of the accounts acquired by NARCL are undergoing corporate insolvency resolution processes under the Insolvency and Bankruptcy Code. He expressed that the recovery in these accounts will take place after the approval of resolution plans by the National Company Law Tribunal.
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