Categories: Banking

SBI, PNB, BoB, UBI, Canara Bank and BoM acquires stake in IDRCL

State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Union Bank of India (UBI), Canara Bank, and Bank of Maharashtra (BoM) have announced their subscription to the shares of India Debt Resolution Company Ltd (IDRCL). Public Sector Banks (PSBs) and Public FIs will hold a maximum of 49% in stake of IDRCL while the remaining stake will be with private-sector lenders. The NARCL has been incorporated under the Companies Act, and public sector banks will hold 51 per cent in NARCL.

The stakes acquired by these banks is given in the table below. The Banks will further reduce their stake in IDRCL which is also given in the table below:

Name of Bank Stake acquired Reduces stake by March 31, 2022
State Bank of India (SBI) 12.30% 5%
Punjab National Bank (PNB) 11.18% 5%
Union Bank of India (UBI) 12.30% 10%
Canara Bank 14.90% 5%
Bank of Maharashtra (BoM) 6.21% 4%
Bank of Baroda (BoB) 12.30% 9.90%

The objective of IDRCL:

India Debt Resolution Company Ltd (IDRCL) and National Asset Reconstruction Company Ltd (NARCL) have been set up by 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.

Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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