Bad bank does two years' worth of business in one week, buys over Rs 24,000 cr of debt just before FY24 ends
bad bank, the National Asset Reconstruction Co (NARCL), has finalised nine transactions worth more than ₹24,000 crore in bank debt in the last work week of FY24, people aware of the developments said, pointing to a frenetic pace of deal making after a relative lull through virtually the entire second half of the fiscal year ending Sunday. Over the past four days, it has completed the transfer of six accounts.
The NARCL made the upfront payments and issued the necessary security receipts (SRs) guaranteed by the government for the six accounts with a total debt count of Rs 9,415 crore.
“Banks have so far received the cash and the SRs guaranteed by the government in the last couple of days for six accounts,” said a banker aware of the details. “The documentation and guarantees are being issued on the remaining three accounts on Friday, and the process could be completed on Saturday.”
Another three accounts with debt of Rs 14,237 crore are also set to be transferred Saturday, the last working day of the fiscal year ending March 31.
NARCL did not respond to ET’s email seeking comment.
With these acquisitions, the total debt held by NARCL will almost double to Rs 48,652 crore, up from the Rs 25,000 crore acquired by the bad bank so far. However, it is still not close to the Rs 82,845-crore target set in 2022.
Since it started operations in January 2022, NARCL has faced multiple organisational, structural and bureaucratic challenges that have delayed acquisitions of bad loans, negating the purpose of this
