The government-owned BoI said in an exchange filing that it has invested Rs 109 crore in NARCL under preferential share issuance.
The approvals required for setting up NARCL and IDRCL, including from the RBI, have now been received, lending major SBI said on Friday.
The move comes after the RBI’s humble attempt in 2017 to resolve 40 large NPAs in a timebound manner, courtesy the freshly minted bankruptcy law.
IBA, entrusted with the task of setting up a bad bank, has put a preliminary board for NARCL in place. The company has hired P M Nair, a stressed assets expert from SBI, as the managing director.
R-Naval has a debt of Rs 11,000 crore and the banks have already provided for 100 per cent of the debt, for the last 8 years.