ICICI Bank, Punjab & Sind to pick up stakes in bad bank NARCL

ICICI Bank and Punjab & Sind Bank have signed agreements to pick up stakes in National Asset Reconstruction Company (NARCL). While ICICI Bank will be investing Rs 137.5 crore to acquire a 5% stake, Punjab & Sind Bank will put in Rs 55 crore for a 2% stake.

ICICI Bank plans to complete the first tranche of equity investment worth Rs 70.45 crore by March 31. Similarly, Punjab & Sind Bank will invest Rs 28.18 crore in the first tranche, which it expects to complete by March 31.

Incorporated on July 7, 2021, NARCL has a total authorised share capital of Rs 2,750 crore.

NARCL has been set up by banks to aggregate and consolidate stressed assets with an exposure of over Rs 500 crore for resolution. It intends to acquire stressed assets of Rs 2 trillion in phases. In January, State Bank of India (SBI) chairman Dinesh Khara had said that the banking sector would transfer 15 large assets worth Rs 50,000 crore to NARCL in FY22.

The Indian Banks’ Association (IBA) has begun a formal search process to identify a chief executive for NARCL. SBI chief general manager Padmakumar Nair is currently on secondment as MD & CEO at NARCL.

Being a public-sector entity, NARCL is running an open selection process and Nair is also in the running for the role. Human resources consulting firm Aon is assisting IBA in the process.

from Banking finance News: Banking finance Latest News, Banking finance Today news, Banking finance Breaking News - The Financial Express | The Financial Express https://ift.tt/dFTJe4l