Finance minister Nirmala Sitharaman will hold a press conference at 5 pm on Thursday. “FM Smt. @nsitharaman to address a press conference today, 16th Sep, at 5 PM in New Delhi," finance ministry said in a tweet.
There may be announcement of much-awaited bad bank. Union Cabinet approved government’s guarantee for the National Asset Reconstruction Company Ltd (NARCL), sources told New18 earlier.
Sitharaman had in her Budget speech for 2021-22 announced the creation of NARCL or bad bank to resolve large cases of stress, and is now closing fruition. Many media reports said that NARCL would buy bad loans at 15 per cent cash and the remaining 85 per cent would be in security receipts guaranteed by the government.
“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 had said while presenting the Union Budget 2021-2022. In August, the Indian Banks’ Association (IBA) has moved an application to the Reserve Bank of India (RBI) seeking licence to set up a Rs 6,000 crore National Asset Reconstruction Company Ltd (NARCL) or bad bank. The NARCL or bad bank was incorporated last month in Mumbai following the registration with Registrar of Companies (RoC). According to sources, the company, after mobilising an initial capital of Rs 100 crore and fulfilling other legal formalities, has approached the RBI seeking licence to undertake asset reconstruction business. The RBI in 2017, had raised the capital requirement to Rs 100 crore from the earlier level of Rs 2 crore, keeping in mind the higher amount of cash required to buy bad loans.