Punjab National Bank (PNB) is planning to pick a stake in the National Asset Reconstruction Company (NARCL) and has identified NPAs worth Rs 8,000 crore to be transferred to the proposed bad bank for resolution. A bad bank refers to a financial institution that takes over the bad assets of lenders and undertakes resolution.
NARCL is being formed by all the banks whereupon some of the NPA advances will be transferred to that ARC for recovery. NARCL is constituted to be promoted by 51 percent share from the public sector space. PNB is the second largest public sector bank after State Bank of India.
PNB is one of the oldest banks in India having a virtual presence in every important center of the country. The Bank caters to a wide variety of audience through spectrum of services including corporate and personal banking, industrial finance, agricultural finance and international finance.
