NARCL has been set up with 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 resolution of such assets.
NARCL’s offer shall have a notable feature where the SRs issued by NARCL for acquiring stressed loan assets will be backed by guarantee from the Government of India. The Guarantee shall provide NARCL a unique strategic advantage, thereby enabling easier aggregation, which is very important for value preservation and driving any resolution process.
NARCL shall have an exclusive arrangement with IDRCL, Wherein IDRCL shall provide end-to-end assistance to NARCL for the optimal resolution outcome for acquired assets. This shall include determination of appropriate resolution strategy as per the RBI framework, Corporate 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