Shares of Jaiprakash Associates Limited dropped 3.91% to ₹3.93 on Wednesday following the company’s announcement regarding the transfer of its outstanding debt to the National Asset Reconstruction Company Limited (NARCL).
In a regulatory filing, Jaiprakash Associates confirmed that a consortium of lenders, including State Bank of India, ICICI Bank, IDBI Bank, Axis Bank, LIC, Canara Bank, Bank of Maharashtra, Punjab National Bank, and others, have assigned/transferred their financial assets, including underlying securities, pledged shares, guarantees, and receivables, to NARCL. This transfer was executed through a Deed of Assignment dated March 11, 2025.
According to the filing, the financial obligations assigned to NARCL will now be managed by India Debt Resolution Company Limited (IDRCL), which has been appointed as the exclusive service agent for debt resolution and recovery.
NARCL, commonly referred to as the ‘bad bank’, was established to take over non-performing assets (NPAs) from financial institutions and assist in resolution efforts.
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