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PNB to transfer bad loans worth Rs.8,000-Cr to NARCL

Business Standard  

Punjab National Bank (PNB) has identified bad loans worth INR 8,000 crore that it will transfer to the National Asset Reconstruction Company (NARCL), expected to commence operations from July. The ‘bad bank', initially proposed by the Indian Banks Association and later endorsed by the government in the Union Budget, will have public sector banks as its promoters, who will collectively hold 51% in the bad bank. PNB's share in the bad bank will be little less than 10%. The bad bank will help in aggregating the loan book of stressed assets from all banks, and facilitate an easy process of auctioning.