The National Asset Reconstruction Company Ltd (NARCL) has invited applications for the position of full-time managing director and chief executive officer of the Rs 6,000-crore bad bank, set up for the resolution of stressed assets. According to the public notice, eligible candidates should have over 25 years of experience in the banking, financial services, and insurance (BFSI) sector, with around 10 years in stressed asset resolution/restructuring/corporate finance.

Candidates should not be less than 45 years and the selected person would be responsible for strategic direction for NARCL to generate maximum value for shareholders and investors while ensuring their interests are safeguarded, it said.

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The last date for the submission of applications by eligible candidates for the position of full-time MD and CEO is March 16, it added. IBA, entrusted with the task of setting up the bad bank, had appointed P.M. Nair, a stressed assets expert from State Bank of India (SBI), as managing director.

In September last year, the government had announced a guarantee worth Rs 30,600 crore to security receipts issued by NARCL. The guarantee is valid for five years. Banks have identified a total of 38 NPA accounts worth Rs 82,845 crore to be transferred to NARCL initially. The transfer of 38 stressed accounts will happen in a phased manner, with banks agreeing to transfer 15 NPA accounts worth Rs 50,000 crore in the first phase by March 2022.

NARCL will try to identify and acquire assets on 15:85 cash and security receipts (SRs). While public sector banks have taken a majority stake in NARCL, India Debt Resolution Company Ltd (IDRCL) will be majority-owned by private sector banks.

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SBI, Union Bank of India and Indian Bank have picked up 13.27 percent stake each in NARCL. Last year, IBA appointed Pradip Shah, Founder of IndAsia Fund Advisors, as NARCL Chairman, while Diwakar Gupta, former managing director of SBI was named IDRCL chairman.

In her Budget 2022 speech, Finance Minister Nirmala Sitharaman had announced that the government intends to set up a bad bank. "An 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.

It will then manage and dispose of the assets to alternate investment funds and other potential investors for eventual value realisation, she added.