 "Indian Bank")
State-owned Indian Bank on Friday said it will divest stake in joint venture entity ASREC (India) Ltd as part of asset monetisation exercise.
The bank holds a 38.26 per cent stake in ASREC (India) Ltd.
As part of the monetisation of the bank's non-core assets, the board of directors of the bank in its meeting held on March 5, 2021, accorded in-principle approval for partial/full divestment of the bank's stake in joint venture ASREC (India) Ltd, Indian Bank said in a regulatory filing.
ASREC is an asset reconstruction company in which Bank of India, Union Bank of India, LIC and Deutsche Bank are the shareholders.
The company was granted a certificate of registration by the Reserve Bank of India in October 2004 to carry out activities under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.
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The company's authorised equity capital was Rs 125 crore and the aggregate paid-up equity and other equity was Rs 146.01 crore as of March 31, 2019, according to its website.
ASREC acquires non-performing assets (NPAs) from the banks/financial institutions at mutually agreed prices with the objective to maximise the returns through innovative resolution strategies.
In March 2017, the finance ministry had advised the state-owned banks to prepare a list of their non-core assets and look at disposing of them at an opportune time.
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