PNB to transfer Rs 8,000 crore loans to bad bank

State -run lender Punjab National Bank will transfer bad loans of Rs 8,000 crore to the proposed bad bank said its chief SS Mallikarjun Rao. The lender on Friday declared a standalone net profit of Rs 586.33 crore for the quarter ended March 31,2020.
National Asset Reconstruction Company or NARCL is expected to be operational by next month. “In the first tranche roughly Rs 8,000 crore of assets is identified by PNB, ”said Rao, adding that bank will take equity participation in the bad bank but it will be less that 10%.
PNB is further looking to monetise it’s non- core assets and will exit out of canara HSBC OBC life insurance where it holds 23% stake. “The process may take anything from 12 to 18 months . Said Raw adding that the time take to complete the formalities which include selecting a merchant banker actuary, legal counsel ,and go through the process.
“Since it is not a listed company the valuation,” he said adding the bank will also exit out of asset reconstructions company of India Ltd.(ARCIL) and some other smaller investments in stock holding corp.

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