National Asset Reconstruction Co. Ltd (NARCL) will be paying its CEO a total remuneration of Rs 1.7 crore per annum, which is significantly higher than the salaries of the heads of some of the large state-owned banks.

NARCL, operating as a bad bank, will be managing the stressed loans of banks.

By linking the salary to market rates for someone who will lead one of India’s biggest experiments in bad loan clean-up, NARCL is making efforts to attract experienced talent, Mint reported.

In a meeting on 30 May, NARCL’s board of directors approved the salary package for Natarajan Sundar, a former State Bank of India (SBI) executive, appointed to lead the bad bank, according to documents reviewed by Mint.

The total compensation will also include a Rs 44 lakh variable pay. The annual discretionary bonus plan of NARCL is based on the achievement of annual targets set by the board and approved by the regulator, the business daily reported.

Sundar’s salary, however, will be lower than that of his counterpart at the largest private asset reconstruction company, Mint reported. According to disclosures, Edelweiss ARC chief executive RK Bansal’s annual salary is Rs 3.25 crore.