India bank has picked up 13.27% stake in the proposed bad bank National Asset Reconstruction Company Ltd (NARCL). The investment of equity stake of 13.27% would be reduced to 9.90% by December 31, 202, Indian Bank added.
NARCL will take over the assets of banks in its own account for fast resolution of sour loans.
NARCL has been incorporated under the Companies Act and has applied to Reserve Bank of India for license as an Asset Reconstruction Company (ARC). NARCL has been set up by banks to aggregate and consolidate stressed assets for their subsequent resolution.
The Cabinet cleared a proposal to provide government guarantee worth Rs 30,600 crore to security receipts issued by NARCL.