He added, “It is imperative that the Government and RBI should help establish NAMCO to address the challenge posed by stressed assets in the banking system. A pro-active and preventive approach is much desirable if we have to ensure speedy revival of the economy.”
key features of National Asset Management Company (NAMCO) as proposed
by FICCI include:
To focus on large ticket stressed assets mainly in Infrastructure, Power, Steel and Telecom sectors to be transferred from the banking system quickly.
Starts with high level of capitalization (up to Rs 5,000 crore) that will allow it to build up a sizeable portfolio of stressed assets.
Majority (51 per cent) owned by private sector and managed as a board driven private company; the board to have adequate number of independent directors with right skills and capabilities.
Government to encourage PSBs to participate in equity of NAMCO up to 49 per cent.
NAMCO to issues security receipts (SRs) of up to 12 years maturity for longer term assets they acquire.
Gets government and regulatory support in its functioning including
support in encouraging banks to transfer assets, forbearance in
amortizing over longer term the losses incurred by banks upon
transfer of stressed assets and to provide additional working