The state -owned bank is 38.26% in ASREC. It is looking to bring the stake down to 30% by the end of the financial year, Kumar said, “Even by March 2026, it has expanded the deadline for a stake of 30% up to one year.
The total value of holding is Rs 37.5 crore.
The banking law prevents a bank from holding more than 30% stake in any non-subsidy company, so that to prevent greater-concentration of risk outside its main activity, which is lending.
Bank of india And Union Bank of India ASREC has 26% in each Life insurance corporation of india 9.18%.
Like any other asset reconstruction company, ASREC purchases non -performing assets from banks and financial institutions, which is at mutually agreed prices to resolve poor loans. It was included in October 2004 to complete activities under the securities and reconstruction of financial assets and will also remain an attractive business in the form of reconstruction of the Security Interest Act 2002. Non-performing assets Of the banking sector as a whole.
The average gross NPA for the sector was 2.3% of the gross advances of Rs 181.3 lakh crore at the end of June. It translates NPA to Rs 4.2 lakh crore, even the average ratio fell below 2.8% in the year.
For the Indian bank, the gross NPA ratio fell by 3.01% to 3.77% one year ago at the end of the June quarter. Its net NPA fell from 0.39% to 0.18%. In the same period, the slipage ratio came down from 1.5% to 0.94%.