Mumbai,  The approvals required for setting up National Asset Reconstruction Company (NARCL) and India Debt Resolution Company (IDRCL), including from the RBI, have now been received, lending major SBI said on Friday.

Accordingly, both the companies are ready to commence their business.

In her Budget speech last year, Finance Minister Nirmala Sitharaman had announced the setting up of a 'bad bank', including an asset reconstruction company and asset management company, to take over the existing stressed debt of banks.

Notably, a total of 38 accounts aggregating Rs 82,845 crore have been identified for transfer to NARCL. However, the transfer will happen in a phased manner.

"Under Phase I, about 15 accounts, aggregating Rs 50,335 crore, are expected to be transferred in the current financial year, i.e., on or before March 31, 2022," SBI said in a statement.

Besides, SBI said that IDRCL is expected to bring in superior resolution techniques, preserve the value, show-case brown field assets and attract domestic as well as foreign investors and alternate investment funds, among others.

"This will maximise the value for all the stakeholders. This mechanism is also expected to free up capital for the lending banks for deployment," SBI said.

According to the statement, both the companies have their respective boards in place, consisting of seasoned professionals from the market.

"To start with, both companies are having their MD and CEOs on secondment basis. Padmakumar Nair, a chief general manager from SBI's stressed assets vertical, will manage NARCL, while Manish Makharia, head of alternate investment fund, SBI Funds Management Pvt Ltd, will be heading IDRCL," the statement said.

"Subrata Biswas, the nominee director on the board of NARCL, will be the interim chairman, while Diwakar Gupta continues as the chairman of IDRCL," it added.