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Bad Bank SR: Government Guaranteed Recent News:  Union Government has approved setting up of a sovereign guarantee (SG), limit not exceeding Rs.30,600 cr., for National Asset Reconstruction Co. Ltd.(NARCL) to acquire stressed loans from public sector banks (PSBs). In this regard, NARCL will acquire the stressed assets at an agreed valuation, modalities yet to be spelt out, through upfront cash payment and issue of security receipts (SRs).  The SRs, which will be subscribed by investors including selling banks, will be backed by the SG and can be invoked by NARCL to meet shortfall, if any, between the face value of SR and actual realisation of the relevant stressed assets assigned in its favour. Salient features include (i) the guarantee is valid for five years (ii) resolution or liquidation of the stressed asset concerned will be a ‘condition precedent’ for invocation of the SG and (iii) the guarantee fee should be paid by NARCL periodically to keep the SG in force....

  SBT Foundation Day (I was asked to give the key note address on SBT Foundation Day celebrated on 12th September 2021 in a virtual meeting organised by ARBOA: Unit SBT Thiruvananthapuram. Ideas shared in the meeting in an informal/formal context is reproduced. Readers are requested to condone english grammar becoming a causality in some places, as I presented it in an informal arrangement)  Good evening. Today marks the beginning of the 77 th year of foundations celebrations of our esteemed organisation. Thank you Shri Vijayakumar for the introduction. Colleagues, Friends and Comrades, when Com. Senan called and told me that I should give a ‘Keynote Address’ on SBT Foundation Day, I was reluctant because, when I joined the bank in July 1980, the Organisation was already 35 years young and even in its new name SBT, it completed its teenage. When so many seniors, who knew the history and were more involved with its affairs are available, why me? But my love for SBT overtook my...