Bad bank s success depends on support from pvt lenders: SBI MD
If all lenders come on board, the National Asset Reconstruction Company (NARC) announced in the budget will be able to aggregate 100 per cent of a sick company s outstanding loans
PTI | May 6, 2021 | Updated 22:25 IST
The government is yet to announce the specific contours of the NARC or the bad bank
State-run lenders will take a lead in creation of the bad bank, but the sick asset resolution platform needs the support of private banks and other lenders to be successful, State Bank of India Managing Director Swaminathan J said on Thursday.
PSBs will only lead bad bank, pvt banks also need to support it: SBI MD
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Last Updated: May 06, 2021, 09:08 PM IST
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If all lenders come on board, the National Asset Reconstruction Company (NARC) announced in the budget will be able to aggregate 100 per cent of a sick company s outstanding loans, which shall ultimately lead to better resolution of the asset quality stress for all.
Reuters
The government is yet to announce the specific contours of the NARC or the bad bank and has also only said that it is willing to provide some sovereign guarantee to help the platform.
Analysts say Q4 numbers are quite telling about YES Bank health, cut price targets
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Analysts said the private lender’s disclosed stressed pool remains high, even as signs of improvement become visible.
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NEW DELHI:
YES Bank s Rs 3,788 crore loss in March quarter, triggered by interest reversals and accelerated provisioning, did not go down well with Dalal Street, as the scrip plunged as much as 13 per cent in Monday’s trade, only to recover some ground later.
Analysts said the private lender’s disclosed stressed pool remains high, even as signs of improvement become visible. They remained cautious on the incremental stress on the corporate book and pegged their price targets in the Rs 12-16 range.
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IDBI Bank mulls investing in NARCL
May 03, 2021
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Large public sector and private sector banks will be investing in NARCL, says Rakesh Sharma, MD & CEO at IDBI Bank
IDBI Bank is considering picking up a stake in the National Asset Reconstruction Company (NARCL) which is being set up jointly by banks to clean up their books.
Rakesh Sharma, MD & CEO at IDBI Bank said that large public sector and private sector banks will be investing in NARCL, with each bank taking less than 10 per cent stake. So, IDBI Bank will also consider investing in the company, Sharma said. He observed that consortium loans (₹500 crore and above) will be transferred to NARCL. The quantum of stressed loans to be transferred to NARCL will be a reasonably good number so that the bank is able to reduce its gross non-performing assets, he added.