Question
National Asset Reconstruction Company Limited (NARCL)
has aggregated debt of around _______ till March 2023, through acquisition of three stressed loans in which Jaypee Infratech became the first large stressed account to be transferred to NARCL by lenders led by IDBI Bank.Solution
National Asset Reconstruction Company Limited (NARCL) has aggregated debt of around Rs 21,000 crore till March 2023, through acquisition of three stressed loans. NARCL, or the bad bank, has been set up as part of the resolution of stressed loans in the banking system. In January 2023, Jaypee Infratech became the first large stressed account to be transferred to NARCL by lenders led by IDBI Bank. The company was among the 12 large accounts referred by the Reserve Bank of India (RBI) to the National Company Law tribunal (NCLT) in 2017. The total exposure of all the banks to Jaypee Infratech was over Rs 9,000 crore and IDBI Bank’s exposure stood at Rs 3,750 crore.
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