The building blocks for the 'Bad Bank' for resolving Rs 2 lakh crore of bad loans are ready. The new entity—National Asset Reconstruction Company—is now in the process of buying bad loans. Clearly, the challenge is going to be the acquisition price for bad assets and restructuring and resolution by another entity, India Debt Resolution Company. At a time when dozens of private asset reconstruction companies are struggling, there is a lot at stake for this dedicated Bad Bank with a dual structure, which is a new experiment for India.
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