Ex-SBI chief Natarajan Sundar appointed NARCL chief


Former director of the State Bank of India (SBI) Natarajan Sundar has been appointed MD & CEO of the National Asset Reconstruction Company (NARCL) effective May 30. June 30, 2020 has been appointed as non-executive chairman of the bad bank. Sundar retired as a deputy director and chief credit officer at the bank on April 30, after serving there for more than 37 years.

“After his name was recommended for the position by the NARCL board, the fitness and goodwill clearance was granted by the sector regulator, RBI on 24 May 2022. The previous incumbent, Mr Padmakumar Nair, who was seconded to SBI, has since have been repatriated to the parent bank,” SBI said in a statement on Tuesday.

Malvika Sinha, who retired as executive director of the Reserve Bank of India (RBI), also joined NARCL’s board as an independent director last week. In addition to the three new appointees, the board of directors has five nominated directors from shareholder banks and another independent director is expected to join the board shortly. “With this, the board of directors will have its full complement of 9 directors,” said SBI.

Fifteen Indian banks have interests in NARCL, with Canara Bank as sponsor. Together with India Debt Resolution Company (IDRCL), NARCL is currently completing the financial and legal due diligence of the identified stress accounts for acquisition. The bad bank is expected to make binding financial offers for a few accounts soon, SBI said.

Once the bad bank makes binding offers, the next step is for the leading lenders to convene joint lenders meetings and then hold a Swiss challenge auction using the NARCL’s offers as anchor bids.

The asset transfer plan has been postponed several times due to concerns about the bad bank’s dual structure. NARCL has already missed the March 31, 2022 deadline for the acquisition of 15 assets worth Rs 50,000 crore. Executive vacancies at the bad bank have also slowed down his work. All vacancies at NARCL will now be filled and RBI approval will be sought where necessary, SBI said earlier this month.

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