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.
Read Also : Canara Bank Q4 results, Net Profit up by 18.33% YoYThe 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 : Blackstone-backed Aadhar Housing Finance IPO commences at Rs 300-315ABOUT 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.
Read Also : Juniper Green Energy Inks PPA to set up 1GW renewable energy capacityNews Must Read
- Canara Bank Q4 results, Net Profit up by 18.33% YoY
- BPCL signs agreement with Noida International Airport
- Indian Bank Q4 results, net profit up by 6 percent on Quarter basis
- PSU Stocks tumbled amid RBI draft circular on lenders
- Paytm share price plunges 4% as president and COO Bhavesh Gupta resigns
- GAIL Global USA and Kinder Morgan Operating LLC signed MOU
- SJVN signs agreement with Tata Power RE for 460 MW Renewable Energy Project
- Keel Laying of the First Next Generation Offshore Patrol Vessel At Goa Shipyard Ltd
- REC Ltd received NOC to set up wholly owned subsidiary in Gift City, Gujarat
- Atanu Chakraborty Reappointed as part-time Chairman of HDFC Bank