Indian Bank acquires 13.2% of the capital of National Asset Reconstruction Company


The Indian bank said on Friday it had taken 13.27% of the capital of the proposed private bank National Asset Reconstruction Company Ltd (NARCL).

The lender subscribed for 1,9800,000 shares of NARCL for a cash consideration of Rs 19.80 crore, he said in a regulatory filing.

The 13.27% equity stake would be reduced to 9.90% by Dec.31, 2021, Indian Bank added.

Three state-owned lenders – SBI, Union Bank of India and PNB – had each acquired more than 12% stake in NARCL on Thursday.

NARCL, which is not yet operational, will take over bad debts from banks into its own account for swift resolution of bad debts.

Last month, Cabinet approved a proposal to provide a government guarantee worth Rs 30,600 crore to security receipts issued by NARCL.

NARCL will pay up to 15 percent of the agreed value of bad debts in cash and the remaining 85 percent would be government guaranteed collateral receipts.

51% will be owned by public service organizations and the remainder by private sector lenders. The state-owned Canara Bank has expressed its intention to be the main sponsor of NARCL with a 12 percent stake.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Previous 5 PSG players are expected to sell in 2022
Next Pershing Square Holdings, Ltd. publishes monthly net asset value and performance report for September 2021

No Comment

Leave a reply

Your email address will not be published.