Canara Bank to be lead sponsor of NARCL with 12% equity

Canara Bank will be the lead sponsor and biggest shareholder of the National Asset Reconstruction Company Ltd (NARCL), contributing 12% equity to it as the state-led bad loan aggregator's capital structure is amended to comply with RBI rules. All equity investors besides Canara will hold less than 10% to ensure diversified ownership. In the initial plan, 11 shareholders were expected to hold just above 9% each in the new entity, which is expected to start operations later this month. SBI, PNB, Bank of Baroda and Union Bank of India have confirmed equity purchases in NARCL.