Bad Bank for stressed assets as a measure to clean up bank books

The Central Government of India launched a Bad Bank with all the regulatory approvals in place.

Daily Current Affairs Quiz 2021

In February, state-run Punjab National Bank (PNB) put its entire 10.01% stake in Arcil, one of India’s oldest ARCs with assets worth ₹12,000 crore under management, for sale.

This was followed by private lender IDBI Bank, which, too, has begun looking for a buyer to sell its 19.18% stake in Arcil.

SBI Capital Markets Ltd (SBI Caps) has been mandated as the sell-side adviser for the transaction.

It has stipulated that a potential bidder “should have a net worth of not less than ₹100 crore or should have assets under management of not less than ₹500 crore”.