The March-end deadline given for transferring Rs 50,000 crore by banks to National Asset Reconstruction Company (NARCL) is unlikely to be met. The main reason for the delay is due diligence and valuation of stressed assets from banks’ end.
As per the current deadline, banks will transfer a total of 38 NPA accounts amounting to Rs 82,845 crore initially. The transfer will take place in phases, wherein in phase one 15 accounts worth Rs 50,000 crore will be transferred to NARCL in the current financial year.
The identified assets will be acquired by the National Asset Reconstruction Company by paying the lenders 15 per cent of the acquisition value in cash and 85 per cent will be done through security receipts (SRs) which would be secured by a government-guaranteed for their face value. It is expected that the stressed assets worth Rs 1.50 lakh crore will be transferred to NARCL
