In February 2021, the Hon'able Finance Minister of India introduced the concept of BAD BANK in her Budget speech to address the high proportion of stressed assets in the Indian banking system. IDRCL is co-created under the pioneering initiative of Government of India along with NARCL. It is mandated with the responsibility of unleashing potential value embedded in the large corporate distress assets (NPAs) of the Indian banking and financial system. IDRCL is privileged to have 14 of the India’s largest private and public scheduled commercial banks as its shareholders.

As the first of its kind institutional framework, IDRCL's mandate include:
1) Provide expert advisory to NARCL on underwriting the acquisition of large corporate NPAs of over Rs. 500 Crore.
2) Comprehensive responsibility of resolution of the assets under management.

IDRCL's objective is to revive and restructure stressed businesses and towards this actively partner with strategic & financial investors, promoters, thought leaders & industry experts, legal/valuation/diligence agencies & wide-ranging stake holders.
IDRCL has impeccable governance standards under the guidance of the Independent Board comprising eminent professionals.
This innovative approach of combining the debt consolidation at ARC and expertise of IDRCL as the debt resolution manager will have a transformative impact. This will inevitably result in maximizing recovery for banks and significant increase in economic activity. The expertise of IDRCL in resolution has the potential to catalyse a robust stressed assets market for potential investors, locally and globally.