Canara Bank to buy 12% stake in bad bank

Canara Bank said it will be the lead sponsor of National Asset Reconstruction Company Ltd. (NARCL), or bad bank, with a 12% stake in the entity.

Bad bank refers to a financial institution that takes over bad assets of lenders and undertakes resolution.

“The board of Canara Bank has given in-principle approval for taking stake in NARCL,” Canara Bank said in a regulatory filing.

Following the board nod, the bank has sought the approval from the Reserve Bank of India (RBI) for participating in NARCL as a sponsor contributing 12% stake.

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Printable version | Jul 27, 2021 11:21:32 PM |

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