Punjab & Sind Bank on Friday said it has entered into an agreement to buy 2 per cent stake in asset reconstruction company NARCL for Rs 55 crore. “Punjab & Sind Bank has entered into an agreement with National Asset Reconstruction Company on March 10, 2022 regarding investment in NARCL,” the lender said in a regulatory filing.
The bank said the equity investment would be done in tranches, with the first investment of Rs 28.18 crore expected to be completed by March 31, 2022.
The financial investment is being done to ensure prompt resolution, including recovery of NPA (non-performing assets) accounts, the bank said.
NARCL was incorporated on July 7, 2021 with a total authorised share capital of Rs 2,750 crore to act as a bad bank for speedy resolution of bad assets of the banks.
In January, SBI Chairman Dinesh Khara said that 38 NPA accounts worth Rs 82,845 crore were identified to be transferred to NARCL.
Transfer of these accounts will happen in a phased manner with banks agreeing to transfer 15 NPA accounts worth Rs 50,000 crore in the first phase by March end.