NARCL Swaps Captains: Banking Veteran Santhosh In, Sundar Exits

5 Jan 2024 , 09:27 AM

According to news reports, P Santhosh, chief general manager of Canara Bank, has been named managing director of National Asset Reconstruction of India (NARCL) from January 5. According to the report mentioned above, NARCL’s MD and CEO, Natarajan Sundar, resigned from his position.

Many industry participants that buy problematic loans by offering cash and security receipts insured by the centre were taken aback by the abrupt change of guards at the government-sponsored asset rehabilitation initiative.

The second member of NARCL’s top management to leave the position before serving out the full term is Natarajan Sundar.

The chairman of NARCL, Karnam Sekar, left his position in August of last year without giving a reason.

On May 30, 2022, Sundar, a seasoned banker who attained the position of deputy managing director at State Bank of India, was named MD for a two-year period.

Karnam Sekar was also appointed in May 2022 for a two-year term, but he left before it ended. Shortly after the finance ministry received a proposal to combine NARCL with the acting agency, India Debt Resolution Company (IDRCL), he resigned.

The idea for the merger came from IDRCL, which at the time was led by Diwakar Gupta. Gupta was named chairman of NARCL in November, succeeding Narayan Sheshadri in that role.

P Santhosh had joined from Canara Bank as a deputation. According to one of the individuals mentioned above, the NARCL will shortly ask candidates to apply for the position.

Two distinct organisations were established: the public NARCL and the private IDRCL. The former was designated as the ‘principal’ business and operated as an asset reconstruction corporation, while the latter served as a resolution ‘agent.’

Information presented to the Rajya Sabha in December stated that at the end of November, ten public sector banks had transferred bad debts totaling Rs 11,617 crore to NARCL. As of November 30, 2023, NARCL had collected Rs 16.64 crore.

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