New Delhi: Having secured a licence from the Registrar of Companies, the Indian Banks' Association (IBA) will soon move an application to the Reserve Bank of India (RBI) to set up a ₹6,000-crore National Asset Reconstruction Company Ltd (NARCL) or bad bank , according to sources. IBA, entrusted with the task of setting up a bad bank, has put a preliminary board for NARCL in place. "Asset Reconstruction Company Limited and Asset Management Company would be set up to consolidate and take over the existing stressed debt," she had said in the Budget Speech. Last year, IBA made a proposal for the creation of a bad bank for swift resolution of non-performing assets. The government accepted the proposal and decided to go for an asset reconstruction company and asset management company model in this regard.

Source: Mint July 18, 2021 08:15 UTC