SBI gets approvals for setting up 'bad bank': All you need to know

SBI has received approvals for setting up National Asset Reconstruction Company (NARCL) and India Debt Resolution Company (IDRCL).

New Delhi:  The approvals required for setting up National Asset Reconstruction Company (NARCL) and India Debt Resolution Company (IDRCL), including from the RBI, have now been received, lending major SBI said on Friday. Accordingly, both the companies are ready to commence their business.

In her Budget speech last year, Finance Minister Nirmala Sitharaman had announced the setting up of a `bad bank`, including an asset reconstruction company and asset management company, to take over the existing stressed debt of banks. 

What is a Bad Bank?