The Hindu Business Line : BoI plans to take critical stakes in Asrec, NCDEX

BANK of India (BoI) has proposed to take critical stakes in two emerging institutions — Asrec, the asset reconstruction company promoted by UTI, and NCDEX, the commodity exchange.

The bank is looking at holding around 13 per cent in the asset reconstruction venture and a smaller but strategic holding in the commodity bourse. The two holdings will help add value to its existing profile, it is felt. BoI already holds two per cent in MCX, the other commodity exchange in India.

Mr M. Venugopalan, Chairman-cum-Managing Director of BoI, said the bank had chalked out an expansion plan, both in India and abroad. Its overseas operations, which contribute a key portion of its business, will be bolstered by upgrading representative offices, including one in China. In the domestic market, it has set a series of growth targets.

He was addressing a banking conclave organised jointly by the Federation of Indian Chambers of Commerce and Industry and the Indian Chamber of Commerce on Wednesday.

Its non-performing assets, which now stand at around 4.5 per cent, are expected to come down to less than three per cent by the year-end.

Earlier, Mr C.K. Dhanuka, Chairman of FICCI's eastern region council, hoped that Indian banks would evolve long-term strategies for assisting manufacturers.