Videocon Group's overseas venture VOVL, Jaypee Infratech, GTL Limited and Visa Steel are among the 15 large accounts identified by banks to transfer to the newly operational National Asset Reconstruction Company Limited (NARCL) in the first phase, several people in the know told CNBC-TV18.

All these accounts are part of the original list of 22 accounts drawn up by banks last year. Some of the names on the original list were dropped as banks believe they will find resolution outside the NARCL.

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Videocon Group's VOVL with Rs 22,128 crore outstanding, Jaypee Infratech (Rs 7,950 cr), GTL Limited (Rs 4,866 cr), Visa Steel (Rs 3,394 cr), Meenakshi Energy (Rs 2,799 cr), Consolidated Construction Consortium (Rs 1,353 cr), Sion Panvel Tollways (Rs 1,262 cr), Rainbow Papers (Rs 1,136 cr) are among the list of 15, CNBC-TV18 has learnt.

Supreme Panvel Indapur Tollway (Rs 904 cr), Helios Photo Voltaic (Rs 851 cr), Chhapra Hajipur Expressways (Rs 846 cr), Mittal Corp (Rs 842 cr), Worlds Window Impex India (Rs 742 cr), Ruchi Worldwide (Rs 715 cr), SSA International (Rs 547 cr) are among the other accounts identified.

List of 15 accounts:

Banks expect the first phase of transfer of these 15 accounts to the NARCL to be completed by March 31. India’s Bad Bank recently went live, almost a year after the bad bank was first announced in the Union Budget of 2021.

Banks have agreed to transfer 15 accounts with approximately Rs 50,000 crores outstanding to the NARCL in the first phase by the end of the fiscal year, Dinesh Khara, the Chairman of State Bank of India had said while announcement the development last week.

So far, banks have already identified 38 large stressed accounts with over Rs 500 crores of loans outstanding each to be transferred to the NARCL in phases, with the total outstanding at Rs 83,845 crores, Khara had said.

However, the total amount expected to be transferred to the NARCL has been scaled down to Rs 1.50 lakh crores from Rs 2 lakh crores estimated earlier.

All identified accounts at 100 percent provided for by banks.

Reserve Bank of India’s final nod was received after a new structure was proposed by the Indian Banks Association which would work with a principal-agent relationship between NARCL and its AMC arm India Debt Resolution Company ltd (IDRCL). While RBI had earlier issued an ARC licence to the entity, it had expressed reservations about plan to transfer assets to an Asset Management Company, ie, IDRCL.

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Banks will get 15 percent cash upfront while transferring bad loans to the NARCL, and the remaining 85 percent in the form of security receipts. The auction will be conducted with a Swiss Challenge method, and other ARCs would be allowed to participate and offer competitive bids. NARCL would however have the right to match the highest offer under the Swiss Challenge method.

Public sector banks led by Canara Bank hold the majority stake in NARCL, and private banks will lead IDRCL. Subrata Biswas, SBI’s Deputy Managing Director, has been named the Chairman of NARCL, whereas Padmakumar Madhavan Nair, former Chief general manager at SBI has already assumed charge as CEO of the entity. Another SBI official- Manish Makharia- will head IDRCL.

(Edited by : Aditi Gautam)

First Published:Feb 2, 2022 7:49 PM IST