Indian Bank gains after board approves divesting ASREC stake

Indian Bank rose 1.15% to Rs 140.75 after the bank said its board accorded in-principal approval for partial or full disinvestment of bank's stake in joint venture, ASREC (India).

The bank holds a 38.26% stake in ASREC (India) and the decision to divest stake is part of monetisation of the bank's non- core assets.

Apart from Indian Bank, LIC of India, Bank of India, Union Bank of India and Deutsche Bank are the other shareholders in the company.

ASREC (India) acquires non performing assets (NPAs) from the banks/financial institutions at mutually agreed prices with the objective is to maximise the returns through innovative resolutions strategies. ASREC positions itself as the multi lender ARC in the public sector aiming to earn the confidence of the financial system in the effective resolution of NPAs by operating in transparent manner with flexibility of the private sector.

Indian Bank reported 108.1% rise in net profit to Rs 514.29 crore on a 75.6% increase in total income to Rs 11,421.34 crore in Q3 FY21 over Q3 FY20.

Indian Bank is a public sector bank. The Government of India held 88.06% stake in the bank as on 31 December 2020.

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