Andhra Bank to divest stakes in joint ventures

State-owned Andhra Bank said it will divest its stake either fully or partially in various joint venture firms.

The board of directors of the bank, at its meeting held on November 11, 2018, accorded its approval for divestment of bank’s stake in full or in part in joint venture investments of the bank — ASREC India, India International Bank (Malaysia) Bhd and IndiaFirst Life Insurance Co Ltd, Andhra Bank said in a regulatory filing.

IndiaFirst is a joint-venture between Bank of Baroda (44 percent), Andhra Bank (30 percent) and UK’s wealth and investment management firm Legal & General (26 percent).

India International Bank (Malaysia) Berhad (IIBM) is a joint-venture of state-owned Bank of Baroda (40 percent); Indian Overseas Bank (35 percent) and Andhra Bank (25 percent) that began its operations in July 2012.

ASREC is engaged in securitisation and reconstruction of financial assets business.

It is owned by Allahabad Bank (27.04 percent), Bank of India (26.02 percent), Andhra Bank (26.02 percent), Indian Bank (11.22 percent), LIC (9.18 percent), Deutsche Bank (0.51 percent).

The Managing Director and CEO Dhananjay Kumar Jain owns 100 shares in the company.

Andhra Bank earlier last week reported a net loss of Rs 434 crore in second quarter of this fiscal, which widened against Rs 385.11 crore loss in year ago same period.

In the first quarter ended June, 2018-19 the bank had posted a net loss of Rs 539.83 crore. In fiscal ended March 2018, the bank had registered a net loss of Rs 3,412.53 crore due to huge amount of bad loans.