The government is planning to merge ASREC Asset Reconstruction Company (ARC) with National Asset Reconstruction Company (NARCL) as part of a strategy to consolidate state-backed bad-loan resolution platforms, people familiar with the matter said.
The proposal is at a preliminary stage and no final decision has been taken, the people said. ASREC ARC is largely owned by public sector lenders including Indian Bank, Union Bank of India, LIC and Bank of India.
“The objective is not business expansion but consolidation. The government wants only one PSU-backed ARC instead of monitoring multiple entities,” one person familiar with the discussions said.
Emails sent to NARCL and ASREC seeking comment did not get any response until press time Tuesday.