Indian lenders have listed at least 17 new non-functioning accounts in the market for Nationwide Asset Reconstruction Co. According to two people with knowledge, the loan rate of Rs 93,240 crore has been pegged to these accounts.
Currently, banks are in the midst of discussions to finalize these accounts in the market. Once these discussions are completed, NARCL may be invited to bid for these accounts, and the individuals mentioned if their identity is not disclosed.
Mortgage accounts in this checklist include Srei Infrastructure Finance Ltd. , Srei Gear Finance Ltd. and Future Retail Ltd. and Future Enterprises Ltd and Jaiprakash Associates Ltd. and Jaypee Cement Corp. the individuals mentioned above. The Government Financial Institution of India is the most important lender for most of these accounts.
According to the first of the two above, the new checklist of cumbersome accounts has been completed, for the reason that the first checklist of 15 accounts shortlisted in February was not submitted to NARCL. The primary audit list included Videocon Oil Ventures Ltd. and Jaypee Infratech Ltd. and Visa Metal Ltd. and Meenkashi Metal Ltd. and Rainbow Papers Ltd. , and the rate of loans over Rs 50,000 crore linked to these fifteen accounts.
From the preliminary checklist, NARCL submitted formal bids to Rainbow Papers Ltd and Consolidated Development Consortium Ltd. For now, but the banks will agree to sell. According to the second individual mentioned above, NARCL only promised a 2-10% refund in the bids, which is not enough for the banks to go ahead with the sale.
The delays mean that NARCL is only formally starting to make a decision. Delays in decision making result in lower payback from burdensome calculations. While the banks initially aimed to switch the 15 accounts by March 31, the deadline was later changed to June 30. This was also missed.
The Ministry of Finance summoned key bankers and NARCL officials to a gathering the following week to discuss explanations for the delay. Over the past month, the ministry has been repeatedly sending notes to bankers asking for clarifications regarding delays, as mentioned by the second person mentioned above. The Ministry of Finance did not immediately respond.
NARCL is India's model for a nasty financial institution that aims to consolidate risky loans from lenders and resolve them by a debt management agency. Under construction, NARCL will pay 15% of the asset value online for risky loans in the form of cash and security receipts subject to the remainder of the value. Web asset value indicates the value of the mortgage account, adjusted for provisions made by banks.
In September 2021, the Federal Government authorized a price lock of Rs 30,600 crore for safety receipts to be issued by NARCL to banks.