The government-promoted National Asset Reconstruction Co Ltd (NARCL) will step up the pace on the acquisition of distressed assets this fiscal year even though it missed a self-imposed target of buying loans worth ₹50,000 crore in FY23, said people aware of the development.
NARCL, sponsored by state-owned banks, acquired ₹10,378 crore outstanding loans last fiscal year from Jaypee Infratech, SSA International and Helios Photo Voltaic Ltd, about one-fifth of the target. All three loans were acquired for a consideration of ₹3,636 crore.
National Asset Reconstruction Co Ltd (NARCL) aims to acquire ₹30,000 crore of Srei Equipment Finance and Srei Infrastructure Finance loans this fiscal year, despite missing its target of acquiring loans worth ₹50,000 crore in FY23. In FY24, the bad bank will also acquire ₹600 crore offered to Rolta India’s secured lenders for their admitted claims of ₹7,086 crore. NARCL is a government-promoted company that acquires distressed assets and is sponsored by state-owned banks. Its acquisitions were delayed due to a lack of clarity on the dual structure relationship between NARCL and India Debt Resolution Co Ltd.
