NARCL invites application for MD & CEO post

After the abrupt exit of incumbent MD & CEO N Sunder at the end of January, the ARC appointed P Santhosh as interim chief. Santhosh is the former chief general manager of , which is also a sponsor bank of the ARC.

NARCL has invited applications from officials with experience of serving large domestic banks or middle/upper-layer finance companies. The applicant is required to have more than 10 years of experience in stressed asset resolution at a senior management level. The newly appointed MD and CEO will be given a three-year tenure.

Inviting applicants for the post, NARCL has said that it proposes to acquire about Rs 2 lakh crore of stressed assets in phases.

NARCL has been active since former managing director took charge as its chairman in the first week of December 2023, replacing , as reported by ET earlier.

Before this, Gupta was chairman of (IDRCL)—an agent for NARCL. Sekar resigned last August as chairman soon after proposed to the finance ministry to merge NARCL with IDRCL, which did not materialise. A month after Sekar resigned, Sunder resigned before his term ended.

It is the only ARC that makes offers under the 15:85 structure wherein 15% of the consideration is cash and the balance 85% is security receipts. The government guarantees any shortfall in the recovery of money promised by the NARCL. However, only SRs worth Rs 30,600 crore are guaranteed by the government, which can be invoked only if there is a shortfall in redeeming them.

According to media reports, NARCL has acquired 18 accounts with outstanding loans of Rs 92500 crore until March 31, 2024. This includes the Rs 32000 crore debt of bankrupt and under the Insolvency and Process.