PNB picks up 12% stake in NARCL, to cut holding by December

Last Updated on December 15, 2022 by Admin

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State-owned (PNB) has picked up 12.06 per cent stake in National Asset Reconstruction Company (NARCL), that intends to resolve Rs 2 trillion soured loans.


has subscribed to 1,80,00,000 shares of NARCL (pending execution of Investment Agreement),” the lender said in an exchange filing.





The lender’s equity stake of 12.06 per cent will be reduced to 9 per cent by December 2021.


The public sector lender has purchased 18 million shares of NARCL at face value of Rs 10/share. The approval from the would be required for the acquisition of shares, the bank is said in an exchange filing.


The indicative time period for completion of the transaction has been stated as the last quarter of FY22.


The NARCL will aggregate of about Rs 89,000 crore in the first phase and resolve them within five years. Earlier this month, the Centre has approved the proposal to provide government guarantee worth Rs 30,600 crore to security receipts issued by the NARCL.


The NARCL will pay up to 15 per cent of the acquisition cost—18 per cent—for in cash and the remaining 85 per cent would be government-guaranteed security receipts.


The NARCL, dubbed as bad bank, will be 51 per cent owned by public sector and financial institutions, and the remaining 49 per cent stake will be held by private sector lenders.

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