Bad Banks Subject – Economy Context – ‘Bad Bank’ to start off with 15 stressed assets worth ₹50,000 cr Concept – In a bid to clean up their books, banks will transfer 15 stressed assets aggregating about ₹50,000 crore by March-end to the National Asset Reconstruction Company Ltd (NARCL). NARCL, which has already […]

    Bad Banks Subject – Economy Context – Finance Minister Nirmala Sitharaman has announced the formation of India’s first-ever “Bad Bank” Concept – “National Asset Reconstruction Company Limited” (NARCL) has already been incorporated under the Companies Act. It will acquire stressed assets worth about Rs 2 lakh crore from various commercial banks in different […]

    BAD BANKS Subject: Economy Context: Government-owned bad bank is more capital efficient: Report Concept: A bad bank conveys the impression that it will function as a bank but has bad assets to start with. Technically, a bad bank is an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC) that takes over […]

    BAD BANKS Subject: Economics Context: Finance Minister Nirmala Sitharaman in her Budget speech on Monday revived the idea of a ‘bad bank’ by stating that the Centre proposes to set up an asset reconstruction company to acquire bad loans from banks. Concept: A bad bank conveys the impression that it will function as […]

Subject: Economy Context: It is reported that the former RBI Governor D Subbarao made a strong case for setting up a bad bank saying it is not just necessary but unavoidable in the present circumstances when NPAs are likely to balloon and much of the resolution will have to take place outside the IBC framework. […]