Others

Other Deals

Banks offload Rs.12,700-Cr Jaiprakash loans to NARCL, get Rs.1,905-Cr upfront in cash

Business Line  

A consortium of 25 banks led by State Bank of India (SBI) has executed the transfer of INR 12,700 crore worth stressed loans belonging to Jaiprakash Associates Ltd (JAL) to National Asset Reconstruction Company Ltd (NARCL).The completion of the transfer done in a 15:85 model means that the banks will, this quarter, get cash amounting to INR 1,905 crore that could be taken to their profit and accounts this quarter. The consideration for the balance amount (INR 10,795 crore) would come as security receipts (SRs) issued by NARCL to these banks.The total outstanding including over dues and interest and penalties was over INR 55,493.33 crore as on February 20, 2025.Meanwhile, the insolvency process of JAL will continue and the deadline for Expression of Interest (EoI) submission has been extended to March 25. JAL was categorised as a non-performing asset (NPA) in 2016 and was admitted to bankruptcy court last year. In January, NARCL had emerged as the sole suitor to acquire Jaiprakash’s stressed loan.Jaiprakash businesses cover sectors including real estate, engineering and construction, cement and hospitality.