IDBI Bank is planning to invest over Rs 272 crore in the government-promoted bad bank National Asset Reconstruction Company (NARCL). IDBI Bank has become one of the stakeholders of NARCL on March 10, 2022 by executing an investment agreement to participate in the equity share capital and NCDs (non-convertible debentures) proposed to be issued by NARCL.
The bank said it will invest cash of Rs 137.50 crore to acquire 5 per cent equity stake and Rs 135 crore to invest in the NCDs of NARCL. Besides, Rs 4.50 crore will be invested in tranches to acquire 9 per cent equity capital of IDRCL. NARCL will primarily undertake activities of an asset reconstruction company and IDRCL will act as a debt resolution company.
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