Under the regulatory norms, for asset sale of over Rs 100 crore, banks have to go for the Swiss challenge method.
In the Swiss auction process, lenders first hold an auction of the NPA, and the offer made by the highest bidder (also known as anchor bidder) is set at a reserve price. Subsequently, they hold yet another auction, inviting bids at higher than the reserve price, but the anchor bidder, in this case NARCL, will get an opportunity to match the best bid.