Bad Bank Chairman Karnam Sekar Reportedly Quit Over Proposals To Merge With IDRCL
Karnam Sekar, the Chairman of the Bad Bank, has stepped down from his position due to disagreements regarding the institution's structure and operations, as reported by the Economic Times. His resignation from the helm of the National Asset Reconstruction Company of India (NARCL) occurred on 19 August, shortly after a proposition emerged advocating the amalgamation of NARCL with the India Debt Resolution Company Ltd (IDRCL).
Confirming the development, N Sunder, the Managing Director of NARCL, stated to a media house that Karnam Sekar's departure was motivated solely by personal reasons. He added that there was no awareness of any suggestions originating from IDRCL.
The proposal for the consolidation of the two entities was initially put forth by IDRCL, which is led by former State Bank of India Managing Director Diwakar Gupta. The idea was presented to the Finance Ministry as a measure to enhance business opportunities and reduce operational costs.
Nevertheless, the report highlights that the Finance Ministry might not be inclined towards this merger proposal, indicating that the existing arrangement is likely to persist for the foreseeable future.
Currently, NARCL operates as the 'principal entity,' tasked with acquiring and aggregating non-performing loan accounts from banks. On the other hand, IDRCL functions as a resolution agent, responsible for overseeing the resolution process.
