PSBs to invest Rs 20 crore in ARC
By Our Banking Bureau | 09 Mar 2002
New
Delhi: Profit-making
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 high investments."
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.
