Eight public sector banks, including the State Bank of India and Canara Bank, have bought a stake in the National Asset Reconstruction Co. Ltd (NARCL), Mint reported on Tuesday, citing documents.
According to the report, Canara Bank has purchased 1.2 crore shares of Rs 10 each, while Bank of Baroda, State Bank of India, Union Bank of India and Indian Bank have bought 99 lakh shares each.
Punjab National Bank and Bank of India have bought 90 lakh shares each, and the Bank of Maharashtra has purchased 50 lakh shares, according to the report. The total investment stands at Rs 74.6 crore
Citing a person familiar with the developments, the daily reported that investors in the bank will increase as more lenders, including private sector banks, join NARCL. Additionally, an asset management company will also be created, the report said.
The NARCL was registered on July 7, 2021.
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The Reserve Bank of India, being the regulator of Asset Reconstruction Companies (ARCs), has already prescribed a regulatory framework for the functioning of ARCs.
NARCL works on acquiring, investing, transferring, selling, disposing of or trading in securitised debts, asset-backed securities or mortgage-backed securities or asset-backed securitised debt, among others.
(With PTI inputs)