Banks have identified about 70-80 large NPA accounts to be transferred to the proposed bad bank; size of each of these accounts is over Rs 500 crore.
Though ARCs have grown in number and size, their potential for resolving stressed assets is yet to be realised fully, RBI governor Shaktikanta Das.
Responding to a whistleblower’s allegations, Ministry of Corporate Affairs orders inspection of books of Edelweiss Asset Reconstruction Company.
NPA resolution needs concerted effort, writes Edelweiss ARC chief RK Bansal. Banks need to sell bad loans at appropriate price, RBI should ease provisioning norms and ARCs develop ability to raise resources.
India's 4th-largest ARC, Kotak's Phoenix Arc, makes 5 bad loan purchases in the last two months after pausing since Mar; Covid also prompts the firm to slow down sales of its acquired stressed assets due to low pricing.
While Brookfield will hold 60% stake in the venture, SBI and HDFC each will own 20%.
After leading Edelweiss ARC to a record recovery in FY20, CEO RK Bansal has revised recovery & bad loan acquisition as intensity of Covid spreads in India.
