M&A

M&A

Govt considers merger of asset reconstruction cos. ASREC and NARCL

Economic Times   National Asset Reconstruction Company  

The union government is exploring a potential merger between ASREC Asset Reconstruction Company and the National Asset Reconstruction Company (NARCL). This proposal aims to consolidate state-backed bad-loan resolution platforms rather than pursue business expansion.ASREC is primarily held by public sector lenders, including Indian Bank, Union Bank of India, and Bank of India, alongside LIC. In NARCL, public sector banks (PSBs) hold a 51% stake, with the remaining 49% being held by private banks.