On Friday it said it has taken a 13.27 percent stake in the proposed bad bank National Asset Reconstruction Company Limited (NARCL). The Lender has subscribed for 1,98,00,000 equity shares of narco For a cash consideration of Rs 19.80 crore, it said in a regulatory filing.

Indian Bank said that the investment of equity stake of 13.27 per cent will be reduced to 9.90 per cent by December 31, 2021.

Three state-owned lenders – SBI,

And PNB had on Thursday bought 12-12 per cent stake in NARCL.

NARCL, which is not yet operational, will take over bad assets of banks for speedy resolution of sour loans.

Last month, the cabinet approved a proposal to provide government guarantee of Rs 30,600 crore on security receipts issued by NARCL.

NARCL will pay 15 per cent of the agreed value for bad loans in cash and the remaining 85 per cent will be a government-guaranteed security receipt.

It will be 51 percent owned by public sector banks and the rest with private sector lenders. state ownership

has expressed its intention to become the principal sponsor of NARCL with a 12 per cent stake.