Punjab National Bank has purchased 1.8 crore shares of the National Asset Reconstruction Company Ltd (NARCL), the bank said in a regulatory filing to the Bombay Stock Exchange. It said the shares were acquired at a cash consideration of Rs 10 per equity share. The transaction is expected to be completed by the end of the fourth quarter, this fiscal year.
The filing stated that the investment of an equity stake of 12.06 per cent by the bank in NARCL would be reduced to 9 per cent by December 31, 2021.
The government had earlier this month approved a Central Government guarantee up to Rs 30,600 Crore to back Security Receipts to be issued by the NARCL. PSBs will have 51% ownership in NARCL.
State-owned Canara Bank had proposed that it intended to be the lead sponsor of NARCL with a 12 per cent stake.
