Non-performing assets worth Rs 50,000 crore could not be transferred to the National Asset Reconstruction Company Ltd (NARCL) by March 31 due to “procedural delays”, a senior bank official said on Wednesday.

The transfer of these 15 Non-Performing Assets (NPAs) is expected to happen very quickly by the end of April.

“We were trying to do that (transfer of 15 NPAs to NARCL) before March 31 but we couldn’t complete all the processes. The process took some time.

“For the first time, we are doing a structure like this. There are lots of rules and procedures to be followed. By March 31, all the capitalisation part had to happen. Private banks needed some approvals to come in and we have got the permission. The capital has come in and it (NARCL) is 100 per cent capitalised as per the plan,” Union Bank of India Managing Director and CEO Rajkiran Rai G told reporters.

In January this year, State Bank of India (SBI) Chairman Dinesh Khara said that NARCL received all approvals to commence operations and a total of 38 NPA accounts worth Rs 82,845 crore were identified to be transferred to NARCL.

The transfer of 38 stressed accounts will happen in a phased manner, with banks agreeing to transfer 15 NPA accounts worth Rs 50,000 crore in the first phase by March 2022, Khara had said.

Rai, the former Chairman of Indian Banks Association (IBA), said the delay in transfer of stressed assets worth Rs 50,000 crore happened as few processes could not be completed.

“We may see it (Rs 50,000 crore of NPA transfer to NARCL happening very quickly by April-end,” he added.

Many lenders, including Union Bank of India, is a stakeholder in NARCL.

Meanwhile, Rai also said that the appointment of NARCL’s CEO is likely to happen anytime soon.

Various banks have invested in NARCL. Last month, Bank of India invested Rs 109 crore while Punjab and Sind Bank bought 2 per cent stake for Rs 55 crore in the entity.

In her Budget 2021-22 speech, Finance Minister Nirmala Sitharaman had announced that the government intends to set up a bad bank as part of the resolution of bad loans worth about Rs 2 lakh crore in the banking system.

While NARCL will acquire and aggregate the identified NPA accounts from the banks, the debt resolution process will be handled by India Debt Resolution Company Ltd. (IDRCL).

NARCL will try to identify and acquire assets on a 15-85 cash and SR security receipts (SRs). There SRs will be issued in favour of the transferring lenders and will be secured by a unique government guarantee for its face value, Rai said.

The setting up of NARCL and IDRCL are expected to address the issue of bad loans in the banking system in a speedier manner.

In September last year, the government had announced to provide guarantee worth Rs 30,600 crore to security receipts issued by NARCL. The guarantee is valid for five years.