Rs 7000 cr investment in bad bank to extract NPA fund

New Delhi: The SBI, ICICI and 9 others will invest Rs 7000 crore in proposed bad bank with the aim to help extract funds stuck in non-performing assets.

Media reports said Canara Bank, Union Bank of India and Bank of India will join their larger state-run peers as investors in the bad bank. The other financiers are Power Finance Corp (PFC) and Rural Electrification Corp (REC).

The ICICI Bank, Axis Bank and Life Insurance Corp of India (LIC)-owned IDBI Bank are also among the shareholders.

Worth mentioning here is that banks with the maximum amount of legacy bad loans are among the shareholders in the dedicated asset reconstruction company (ARC). Bankers expect the new entity to be up and running by the first quarter of the new fiscal.