 "SBI")
Four public sector lenders -- State Bank of India, Canara Bank, Punjab National Bank and Union Bank of India -- on Thursday said their stakes in India Debt Resolution Company Ltd (IDRCL) have come down to 5 per cent each.
The bad bank or the National Asset Reconstruction Company Ltd (NARCL) will acquire bad loans from banks to help clean up their books, while the IDRCL will handle the debt resolution process of these loans.
With the current round of preferential allotment by IDRCL, equity stake of Canara Bank has now reduced to 5 per cent from previous holding of 14.90 per cent, the bank said in a regulatory filing.
The reduction of stake is on account of issuance of fresh shares on preferential basis to the existing shareholders.
PNB's stake came down from 11.8 per cent while Union Bank's holding reduced from 12.30 per cent in the debt resolution company.
Public sector banks will hold 51 per cent stake in NARCL and 49 per cent in the debt management company IDRCL.
Indian Banks' Association (IBA) was entrusted with the task of setting up the bad bank. Last month, the IBA moved an application before the Reserve Bank of India for a licence to set up the Rs 6,000-crore NARCL.
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