Punjab National Bank to pick up stake in bad bank

Tags ₹8,000 cr. for 1st-tranche transfer

Punjab National Bank (PNB) on Saturday said it will pick up a stake in the National Asset Reconstruction Company Ltd. (NARCL) and has identified NPAs worth ₹8,000 crore to be transferred to the proposed bad bank for resolution.

“NARCL is being formed by all the banks whereupon some of the NPA advances will be transferred to that ARC for recovery,” MD S.S. Mallikarjuna Rao said.

In the first tranche, roughly ₹8,000 crore is identified to be transferred to NARCL, he said.

On a recent order by the special Prevention of Money Laundering Act (PMLA) court on Kingfisher Airlines, Mr. Rao said the bank had not much outstanding and PNB will get its share based on the sales proceeds.

The bank said it was expecting an almost threefold jump in its net profit to ₹6,000 crore in the current financial year as the consolidation process was over.

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