Indian Bank get approved by govt to store 30% stake in Asset Reconstruction Company
The government’s support in providing exemption to public sector bank is formally done to significantly overhaul the financial structure of the bank’s core which needs resolution in non-performing assets.
The Indian government has approved the Indian Bank to hold shares exceeding 30% in an asset reconstruction company, in line with contemplation from the central bank. The significant move by the Indian government was recommended by the Reserve Bank of India which notified this in the official gazette on January 12, 2023. This exemption is valid until March 31, 2025, and comes into effect from the date of its notification in the Official Gazette.
KEY POINTS RELATED TO EXEMPTION:
According to the official gazette notification, the provisions of sub-section 2 of section 19 of the Banking Regulation Act shall not apply to Indian Bank regarding its holding shares of an amount exceeding 30% of the paid-up capital of ASREC India Limited.
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The government’s support in providing exemption to public sector bank is formally done to significantly overhaul the financial structure of the bank’s core which needs resolution in non-performing assets. The other shareholders apart from Indian Bank are-LIC, Bank of India, Union Bank of India, and Deutsche Bank.
Read Also : Indian Bank Hands Over Sanction Letters Worth Rs 1,011 Crore to Over 3,000 WomenABOUT ASREC INDIA LIMITED: The company is a public Limited, incorporated under the Companies act 1956, and was granted certificate of registration by RBI on October 11, 2004 to carry out activities under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
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