CURRENT AFFAIRS : BANKING & FINANCE
Bad Bank chairman Karnam Sekar resigns over disagreements in merger with IDRCL
- Karnam Sekar, the chairman of the National Asset Reconstruction Company of India (NARCL), commonly referred to as the Bad Bank, has resigned due to differences in the structure and functioning of the institution.
- National Asset Reconstruction Company of India (NARCL) Chairman Sekar resigned soon after a proposal for merging the public sector NARCL with India Debt Resolution Company Limited (IDRCL) was suggested.
Origin of Merger Proposal :
- The report notes that the proposal for the merging of two entities first came from IDRCL, headed by former State Bank of India (SBI) managing director (MD) Diwakar Gupta.
- It was suggested to the Finance Ministry that the two entities should be merged in order to optimize business opportunities and reduce costs.
