Updated: June 6, 2021 6:16:22 am
Punjab National Bank (PNB) on Saturday said it will buy stake in the National Asset Reconstruction Company Ltd (NARCL) and has identified non-performing assets (NPAs) worth Rs 8,000 crore to be transferred to the proposed bad bank for resolution.
Bad bank refers to a financial institution that takes over bad assets of lenders and undertakes resolution. “NARCL is being formed by all the banks whereupon some of the NPA advances will be transferred to that ARC for recovery … NARCL is constituted to be promoted by 51 per cent share from the public sector space. We are the second largest public sector bank after State Bank of India,” PNB Managing Director S S Mallikarjuna Rao said, adding that all the bigger banks are contributing but the stake of each will be less than 10 per cent.
“We are expecting that by June 30, everything will be put in place. Things would start working from July 1,” he said. In the first tranche, roughly Rs 8,000 crore is identified by the bank to be transferred to the NARCL.
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