Private Equity

Other Private Equity/Strategic Investments

SBI, BoB, PNB, Canara Bank pick up stake in debt resolution co IDRCL

Business Line  

State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), Union Bank of India (UBI), Canara Bank, and Bank of Maharashtra (BoM) announced subscription to the shares of India Debt Resolution Company Ltd (IDRCL). PSBs and public Financial Institutions (FIs) will hold a maximum of 49% stake in IDRCL and the rest will be with private sector lenders. As per the Union Budget 2022 announcement, a National Asset Reconstruction Company Ltd (NARCL) and an Asset Management Company (IDRCL) have been set up by lenders (public sector and private sector banks and financial institutions) to consolidate and take over the existing stressed debt in the banking/ financial system and then manage and dispose the assets to Alternate Investment Funds and other potential investors for eventual value realisation. The NARCL will acquire assets by making an offer to the lead bank. Once NARCL's offer is accepted, IDRCL will be engaged for management and value addition.