Live Blog: Finance Minister Nirmala Sitharaman addresses media

NPA worth Rs. 2 lakh crore will be sent to NARCL
Non-performing assets worth Rs. 2 lakh crore will be sent to the NARCL. Rs. 90,000 crore will be transferred in the first phase.
Stake of PSBs
Public sector banks to hold 51% stake in NARCL, 49% in Debt Management Company: Finance Minister.
Guarantees will be valid for up to five years
Government guarantees will be valid for up to five years. This will ensure a timely resolution of assets: Finance Minister
Addressed issues in the banking sector
We have addressed issues in the banking sector that were there in 2015: Finance Minister.
India Debt Resolution company
Besides NARCL, the India Debt Resolution company will also be set up: Finance Minister.
PSBs are not waiting for government
Public sector banks are not waiting for the government for capital but they are raising funds through equity and debt markets: Finance Minister.
Profit and lenders
In 2018 two out of 21 Public Sector Banks were profitable. In 2020-21, only two public sector lenders reported a loss for the full year: Finance Minister
Detection time for bad loans
The average lag time in the detection of large bad loans is of 57 months, Sitharaman said. The Finance Minister added that the RBI has taken various steps to reform the banking sector.
Rs. 99,000 crore recovered from written-off assets
Rs. 99,000 crore recovered from written-off assets such as Bhushan Steel, Essar Steel: Finance Minister
Over Rs. 5 lakh crore recovered by banks
In the last six financial years, banks have recovered over Rs. 5 lakh crore, the finance minister said. "Of this Rs 3.1 lakh crore have been recovered since March 2018. Recoveries include written off loans as well," she added.
Cabinet approves bad bank
The Union Cabinet has approved government backing for security receipts worth Rs. 30,600 crore to be issued by the NARCL or the bad bank.
Nirmala Sitharaman's address to media
Finance Minister Nirmala Sitharaman to address media soon.
Bad Bank may cost Rs. 6,000 crore
The Indian Banks' Association has estimated that Bad Bank will be set up at a cost of Rs. 6,000 crore. IBA has been given the responsibility of setting up the entity. The initial capital of Rs. 100 crore has been mobilized, as mandated by the regulator.
What Sitharaman had said in her Budget speech
“An Asset Reconstruction Company Limited and Asset Management Company would be set up to consolidate and take over the existing stressed debt. It will then manage and dispose of the assets to alternate investment funds and other potential investors for eventual value realization," Sitharaman had said in the Budget speech.
NARCL would buy bad loans
Reports suggest that NARCL would buy bad loans at 15 percent cash and the remaining 85 percent would be in security receipts guaranteed by the government.
2021-22 Union Budget
Sitharaman had first announced the setting up of a ‘bad bank’ in the 2021-22 Union Budget.
What is Bad Bank?
A Bad Bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution.
Bad Bank proposal likely cleared
The Union Cabinet on Wednesday has likely cleared a proposal to provide government guarantee to security receipts issued by the National Asset Reconstruction Company (NARCL) as part of the resolution of bad loans, sources told news agency PTI.
Nirmala Sitharaman to address media at 5 pm
Finance Minister Nirmala Sitharaman will address the media at 5 pm on Thursday. She is expected to talk about the announcements related to the bad bank proposal.