Private lender ICICI Bank on Friday announced that it has signed an agreement on March 10, 2022 for interest in National Asset Reconstruction Company Limited (NARCL) to acquire 5% stake in the organization. NARCL or awful bank is an asset reconstruction organization, which was fused on July 7, 2021.
The bank will acquire up to 5 percent equity holding in NARCL with total cash consideration of up to ₹137.5 crore in tranches. Equity investment would be in tranches with first tranche of value speculation of ₹70.45 crore expected to be completed by March 31, 2022, ICICI Bank said in a regulatory filing.
Shares of ICICI Bank on Friday traded 1.25 percent higher at ₹677.80 each on BSE during late trade.
Finance Minister Nirmala Sitharaman in her Budget 2021-22 had announced that the government expects to set up a bad bank as a feature of the resolution of bad loans worth about ₹2 lakh crore in the banking system.
State Bank of India (SBI), Union Bank of India and Indian Bank have gotten 13.27 percent stake each in NARCL. Punjab National Bank has likewise acquired close to 12% stake in the bad bank.
Earlier, SBI Chairman Dinesh Khara had informed that NARCL has received all endorsements to initiate tasks, and a sum of 38 NPA accounts worth ₹82,845 crore have been identified to be transferred to in it initially.