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The PSU Bank Index has risen by more than 56% in the last 1 year, the Nifty Private Bank Index rose by just 14%, and in the same period Bank Nifty by 13%, making PSU Banks the leader of the segment.
NARCL, commonly known as bad bank, operates by acquiring bad loans from banks, paying 15 per cent of the amount in cash and the remainder in government-guaranteed security receipts, which banks can invoke during resolution or liquidation.