New Delhi: As part of the move to monetise non-core assets, the Board of Directors of state-run Indian Bank has given its approval to the disinvestment of the bank's shares in ASREC India Ltd, Indian Bank said on Friday. In a regulatory filing to the stock exchanges, Indian Bank said, "In terms of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we have to inform you that as part of monetization of Bank's Non- core Assets, Board of Directors of the Bank in its meeting held on date i.e. 15.03.2021 accorded in-principal approval for partial/full disinvestment of Bank's stake in Bank's Joint Venture ASREC (India) Ltd. The Bank holds 38.26 percent stake in ASREC (India) Ltd."
ASREC (India) Limited is a Public Limited Company which carries out activities under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. The company acquires non-performing assets (NPAs) from banks/financial institutions at mutually agreed prices with the objective to maximise the returns through innovative resolutions strategies.
The company has an authorised equity capital of Rs 125 crore and as on March 31, 2019, the aggregate of paid up equity and other equity of the company was Rs 146.01 crore.
The government announced the merger of Allahabad Bank with Indian Bank in 2019 and the merger took effect in April 2020. The merger was part of a large consolidation exercise under which 10 public sector banks were amalgamated into four. Indian Bank carried out a software migration only recently on February 15, which completed the merger. Indian Bank reported a standalone net profit of Rs 514 crore in the third quarter of the current fiscal.
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