Resignation Intimation_Mr. N Sundar , 22-01-2024
The Hon’ble Finance Minister, in the Union Budget 2021 announced the formation of an ARC-AMC structure, comprising two entities viz. National Asset Reconstruction Company Limited (NARCL), and India Debt Resolution Company Limited (IDRCL) for aggregation and resolution of Non-Performing Assets (NPAs) in the banking industry
NARCL a government entity, has been incorporated on 7th July 2021 with majority stake held by Public Sector Banks and balance by Private Banks with Canara Bank being the Sponsor Bank. NARCL is registered with the Reserve Bank of India as an Asset Reconstruction Company under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
NARCL has been set up as a strategic initiative to clean up the legacy stressed assets with an exposure of Rs 500 crore and above in the Indian Banking system. NARCL will offer adaptable acquisition structures comprising of an optimal mix of Cash and Security Receipts (SRs) to the Selling Banks and Financial Institutions, across sectors and geographies. NARCL’s acquisition processes will be administered by their Financial Asset Acquisition Policy framed under the extant guidelines for asset reconstruction companies. NARCL’s investment strategy focuses on aggregating the stressed assets under one roof to ensure efficient and expeditious resolution of such assets.
NARCL shall have an exclusive arrangement with IDRCL, which shall provide end-to-end assistance to NARCL for the optimal resolution strategy for acquired assets. This shall include determination of appropriate resolution / disposal strategy as per RBI framework, Company Insolvency Resolution Process proceedings under Insolvency and Bankruptcy Code, 2016, Enforcement of security / liquidation, sale of assets / slump sale, sale to Stressed Funds, Alternate Investment Funds, Strategic Investors, etc.