State Bank of India, Punjab National Bank, Bank of Baroda ICICI, Axis Bank among others to infuse Rs 7,000 crore to form Bad Bank: Report

State Bank of India, Punjab National Bank, Bank of Baroda ICICI, Axis Bank among others to infuse Rs 7,000 crore to form Bad Bank: Report

FPJ Web DeskUpdated: Monday, March 01, 2021, 10:19 AM IST
article-image
FM Nirmala Sitharaman during Budget presentation | ANI Photo

Eleven bank and non-banking lenders are expected to infuse Rs 7,000 crore as initial capital in the newly-proposed bad bank, stated an ET report.

Public sector banks like State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Bank of India will be infusing capital and will have stakes in the bad bank. Meanwhile, private banks like Axis Bank, ICICI Bank and LIC-owned IDBI Bank are also investing in this bank. Other non-banking stakeholders in the new bank will be Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

The report added that all the 11 shareholders will hold around 9 per cent share and no one will hold more than 10 per cent share.

The bad bank will allow more shareholders to join in a later day.

During the Union Budget for FY22, Finance Minister Nirmala Sitharam proposed a bad bank to reduce non-performing assets (NPAs) in the system.

RECENT STORIES

Analysis: Anonymous Electoral Bonds Reined In — But What About Anonymous Cash Donations?

Analysis: Anonymous Electoral Bonds Reined In — But What About Anonymous Cash Donations?

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report