The Government has offered a sovereign guarantee to help the new ‘bad bank’, proposed in this year’s Budget, extract better value from non-performing loans worth ₹2-lakh crore in the banking system. To begin with, the National Asset Reconstruction Company Limited (NARCL) will pitch to take over toxic assets worth ₹90,000 crore that banks have already fully provided for. It will offer a certain value to the lead bank for troubled loans of over ₹500 crore, and pay 15% upfront in cash, and issue the balance as tradable security receipts. (Read More)
Did you check the recent updates in Issues-in-News?