Smt. Sitharaman thanked IBA for having come together in establishing the National Asset Reconstruction Company Ltd. and India Debt Resolution Company Ltd. “Working together, NARCL and IDRCL would be able to restructure and sell the NPAs.”
The Minister asserted that NARCL is not a bad bank. “It is a formulation which is intended to clean up banks’ assets and dispose of NPAs in a speedy manner. Banks are now able to raise money from the market, hence the burden on govt. to recapitalize banks will be less, this is how we want banks to function – a lot more professional, with a changed mindset.” The Finance Minister said that this is absolutely the right time to become professional. Bank valuations should be razor-sharp, enabling you to raise the right kinds of amount at the right cost, she said.