IDBI Bank to invest over Rs 272 crores in bad bank NARCL

IDBI Bank on Friday said it has become one of the stakeholders in the government-promoted bad bank National Asset Reconstruction Company Ltd (NARCL), and will invest over Rs 272 crore to acquire equity stake and subscribe to its bonds.

"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," IDBI Bank said in a regulatory filing.

Earlier on March 8, the lender had executed an investment agreement for participation in the equity share capital of India Debt Resolution Company Ltd (IDRCL), it added.

The bank's final holding in NARCL and IDRCL will be 5 per cent and 9 per cent, respectively.

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.