Indian Bank is all set to divest full or partial in joint venture entity ASREC (India) Ltd as part of asset monetisation. This decision has been taken by the board of directors (BoDs) of the bank during a meeting held on March 5, 2021. Currently, the bank holds a 38.26% stake in ASREC (India) Ltd.
- ASREC acquires non-performing assets (NPAs) from the banks/financial institutions at mutually agreed prices to maximize the returns through innovative resolution strategies.
What is asset monetization?
Asset Monetization is the unlocking of the value of unutilized or underutilized public assets that are no longer used in a company’s business operations.
- It should be noted that in Union Budget FY22, the Central Government pushed on asset monetization of central public sector enterprises (CPSUs) to bring its fiscal deficit to below 4.5% of GDP (Gross Domestic Product) by 2025-26. India’s fiscal deficit for FY22 is pegged at 6.8% in 2021-22.
About ASREC (India):
ASREC is an asset reconstruction company in which Bank of India, Union Bank of India, LIC (Life Insurance Corporation of India) and Deutsche Bank are the shareholders.
- In 2004, it received certificate of registration from Reserve Bank of India (RBI) to carry out activities under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.
Managing Director & Chief Executive Officer– Girish Sharan Sinha
Headquarter– Mumbai, Maharashtra
Recent Related News:
i.In FY22 there will be a stake sale of Bharat Petroleum Corporation Ltd, Air India(BPCL), Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam Ltd among others.
ii.GAIL (India) Limited has acquired a 5% stake of Indian Energy Exchange Ltd (IEX) in Indian Gas Exchange Ltd (IGX). GAIL becomes the 3rd strategic investor in IGX after Adani Total Gas & Torrent Gas. With this disinvestment, IEX will hold 85% stake in IGX.
About Indian Bank:
In March 2020, Allahabad Bank was amalgamated with Indian Bank.
Establishment– 1907
Managing Director & Chief Executive Officer– Padmaja Chunduru
Headquarters– Chennai, Tamil Nadu
Tagline– Your Own Bank
