Also, Diwakar Gupta, former Managing Director,
, has been elected as the chairman of IDRCL, the people said.
In May, SBI Chief General Manager Padmakumar Nair was appointed as the MD of NARCL.
Prior to joining Aditya Birla ARC, Jain was with Asset Reconstruction Company of India, JM Financial and SBI Capital Markets. He has 29 years of experience in Corporate Lending, Investment Banking and Stressed Fund Management.
After retiring from SBI, Gupta joined Aditya Birla Financial Services as a senior advisor and later joined Asian Development Bank as its vice-president.
Shah, an MBA from Harvard and a chartered accountant, is credited with founding India’s first and largest housing finance company, HDFC, and rating firm CRISIL.
“The function of NARCL will be to acquire these assets from the lenders at a reasonable price as per the prescribed procedures, while the role of IDRCL will be to provide a fair settlement of their assets. We expect NARCL to make proposals to the banks to acquire the assets. Fourth quarter this year,” Shah told ET, confirming his appointment.
Jain could not be reached for comment. Gupta did not respond to a request for comment.
The government has created a twin structure for resolution of stressed assets, in which public sector banks will own NARCL while private lenders will have majority stake in IDRCL. The Reserve Bank of India has issued an ARC license to NARCL, but the regulator is yet to allow IDRCL to start operations. In September, the cabinet approved a proposal to provide a government guarantee of Rs 30,600 crore for security receipts issued by NARCL.