Lenders Request RBI Clearance for Jaiprakash Associates' Loan Sale to NARCL
ECONOMY & POLICY

Lenders Request RBI Clearance for Jaiprakash Associates' Loan Sale to NARCL

Lenders to Jaiprakash Associates have sought clearance from the Reserve Bank of India (RBI) to proceed with the sale of the company's loan to the National Asset Reconstruction Company Limited (NARCL). This move underscores efforts to address non-performing assets (NPAs) in the banking sector and streamline the resolution process for distressed loans.

The request for RBI clearance indicates lenders' commitment to resolving the debt exposure to Jaiprakash Associates through strategic measures such as loan sales to asset reconstruction companies (ARCs). NARCL, as a specialised entity for acquiring and resolving stressed assets, offers a viable solution for lenders to recover their dues and clean up their balance sheets.

The sale of Jaiprakash Associates' loan to NARCL aligns with the government's broader initiative to address the issue of NPAs in the banking system and revitalise the financial sector. It demonstrates stakeholders' willingness to collaborate with regulatory authorities and implement effective mechanisms for resolving distressed assets.

Upon receiving RBI clearance, lenders can proceed with the sale of Jaiprakash Associates' loan to NARCL, facilitating the resolution of the company's debt and paving the way for its restructuring or resolution. This step is expected to contribute to the stabilisation of the banking sector and support economic recovery efforts.

Overall, the lenders' request for RBI clearance to sell Jaiprakash Associates' loan to NARCL reflects proactive measures to address NPAs and strengthen the financial health of banks. It underscores the importance of collaborative efforts between regulators, lenders, and ARCs in resolving stressed assets and restoring confidence in the banking sector.

Lenders to Jaiprakash Associates have sought clearance from the Reserve Bank of India (RBI) to proceed with the sale of the company's loan to the National Asset Reconstruction Company Limited (NARCL). This move underscores efforts to address non-performing assets (NPAs) in the banking sector and streamline the resolution process for distressed loans. The request for RBI clearance indicates lenders' commitment to resolving the debt exposure to Jaiprakash Associates through strategic measures such as loan sales to asset reconstruction companies (ARCs). NARCL, as a specialised entity for acquiring and resolving stressed assets, offers a viable solution for lenders to recover their dues and clean up their balance sheets. The sale of Jaiprakash Associates' loan to NARCL aligns with the government's broader initiative to address the issue of NPAs in the banking system and revitalise the financial sector. It demonstrates stakeholders' willingness to collaborate with regulatory authorities and implement effective mechanisms for resolving distressed assets. Upon receiving RBI clearance, lenders can proceed with the sale of Jaiprakash Associates' loan to NARCL, facilitating the resolution of the company's debt and paving the way for its restructuring or resolution. This step is expected to contribute to the stabilisation of the banking sector and support economic recovery efforts. Overall, the lenders' request for RBI clearance to sell Jaiprakash Associates' loan to NARCL reflects proactive measures to address NPAs and strengthen the financial health of banks. It underscores the importance of collaborative efforts between regulators, lenders, and ARCs in resolving stressed assets and restoring confidence in the banking sector.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement