P Santhosh, CGM of Canara Bank, is appointed MD of NARCL

The National Asset Reconstruction Company (NARCL) has named P Santhosh, Chief General Manager of Canara Bank, as Managing Director.Unexpectedly, P Santhosh, Chief General Manager of Canara Bank, has been named Managing Director of National Asset Reconstruction Company (NARCL) from January 5, taking over for the resignation of Natarajan Sundar. The sector is taking notice of the sudden shift in leadership at the government-backed asset restoration group.Senior Management Resignations Having held the position of Deputy Managing Director at State Bank of India, Natarajan Sundar is the second senior official to leave NARCL before the appointed term was completed. The NARCL was left in a state of uncertainty in August when Karnam Sekar, the organization's chairman at the time, likewise resigned without giving a reason. As with Karnam Sekar before him, Sundar took over as Managing Director on May 30, 2022, with a two-year term in place.

The fact that both resignations happened before the two-year period was up raised concerns about NARCL's stability and organizational structure. Proposal for a Merger and Prior Changes in Leadership A plan to combine NARCL with India was intimately related to Karnam Sekar's unexpected resignation.With the public sector NARCL serving as the primary asset reconstruction business and the private sector IDRCL serving as a resolution agency, the merger plan sought to streamline both organizations' activities. Nonetheless, the proposed merger now has more uncertainty due to the unanticipated changes in leadership. Future Change in Leadership NARCL is anticipated to extend an invitation to apply for the open job shortly after P Santhosh assumes the role of Managing Director.

Santhosh will be instrumental in guiding the asset reconstruction firm through its mandate of collecting problematic loans and aiding their resolution. He joined NARCL on a deputation from Canara Bank. Overview of Finances Ten public sector banks transferred Rs 11,617 crore in bad loans as of November.P Santhosh, who is presently Canara Bank's Chief General Manager (CGM), has been deputated to lead NARCL as its temporary MD & CEO in light of this departure. It is anticipated that Santhosh, who comes from Canara Bank, will lead NARCL during this period of change.