IBA sets up working group on asset rejig companies

MUMBAI: The Indian Banks’ Association (IBA) has constituted a working group on asset reconstruction companies (ARCs). The group will operate continuously on various issues and take them up with the IBA, the RBI and the government.

The four-member group comprises Hari Hara Mishra, CEO of Asset Reconstruction Companies Association, Purshotam Agarwal, chief investment officer of National Asset Reconstruction Company (NARCL), Mythili Balasubramanian of Edelweiss, and Tarun Kumar, director of Encore Asset Reconstruction Company. Banks now have skin in the game following the creation of the NARCL promoted by lenders. NARCL also enjoys some guarantees from government.