invest Rs 20 crore in ARC
Our Banking Bureau
9 March 2002
public sector banks, including Punjab National Bank (PNB) and
Indian Overseas Bank (IOB), are expected to invest about Rs 20
crore in the asset reconstruction company (ARC), which is to be
set up for tackling the non-performing asset problem of banks.
PNB executive director S
Narayansami says his bank will be part of the company, which will
be started on a pilot basis by June 2002. "But I cannot
furnish more details about the investment or the amount of
equities PNB will pick up in the company."
IOB chairman SC Gupta
says all major PSU banks will participate in ARC. "The
initial investment may be Rs 20 crore from each profit-making
bank. Loss-making or weak banks [like Indian Bank, Uco Bank, Dena
Bank and United Bank of India] may not be forced to come up with
The government is also
trying to rope in multilateral agencies
like International Finance Corporation and Asian Development Bank
to invest in distressed assets of the Indian banking sector.
Go to the Punjab National
Bank index page