Zoom News : Mar 01, 2021, 08:28 PM
New Delhi: Eleven bank and non-banking lenders are expected to infuse Rs 7,000 crore as initial capital in the newly-proposed bad bank, stated an ET report.Public sector banks like State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Bank of India will be infusing capital and will have stakes in the bad bank. Meanwhile, private banks like Axis Bank, ICICI Bank and LIC-owned IDBI Bank are also investing in this bank. Other non-banking stakeholders in the new bank will be Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).The report added that all the 11 shareholders will hold around 9 per cent share and no one will hold more than 10 per cent share.The bad bank will allow more shareholders to join in a later day.During the Union Budget for FY22, Finance Minister Nirmala Sitharam proposed a bad bank to reduce non-performing assets (NPAs) in the system.