According to an exchange filing, Bank of Baroda (BoB) has subscribed 99,000 shares of India Debt Resolution Company Limited (IDRCL).
Earlier, under a new structure approved by the regulator, National Asset Reconstruction Company Limited (NARCL) or bad bank would acquire and aggregate bad loan accounts from banks, while IDRCL would handle the resolution process under a special arrangement.
Public Sector Banks (PSBs) will hold a maximum of 49% stake in IDRCL while the remaining stake will be with private sector lenders.
BoB, Punjab National Bank (PNB), Bank of India (BoI), Bank of Maharashtra, SBI, Union Bank of India, Canara Bank, Indian Bank and IDBI Bank are the shareholders of IDRCL.
IDRCL is expected to improve resolution techniques, preserve value, showcase brownfield assets and attract investors and alternative investment funds.
In addition, Bank of Baroda will reduce stake in IDRCL from 12.30% to 9.9% by March 31.
On Friday, Bank of Baroda’s stock closed down 0.28%. 105.40 each on NSE.
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