IFCI to offload 20% stake in ARC arm
New Delhi: IFCI Ltd is offloading 20 per cent stake in its asset reconstruction subsidiary Assets Care Enterprise Ltd (ACE) to two leading banks, according to a report that appeared in The Financial Express. It is also expected to expand its capital base soon by roping in more partner banks in the asset reconstruction company (ARC). The two banks will pick up 10 per cent each following a licensing rider imposed by the Reserve Bank of India (RBI). While one has already put in the funds, the other is expected to do so in the coming week. The officials hoped that this would pave the way for issue of licence by the end of the month.

IFCI has already put in place an eight-member board of directors. Chairman VP Singh is the non-executive chairman of ACE. The others are IFCI executive director (ED) MV Muthu, Punjab National Bank ED TS Narayanasami, TFCI managing director (MD) M Narayanan, former RBI deputy governor Jagdish Capoor, former MD of Steel Authority of India Arvind Pande, ex-CMD of Small Industries Development Bank of India PS Nimbalkar and ex-Asian Development Bank official VV Desai. The officials added that a number of banks had shown interest in the joint venture, since the ICICI Bank-led ARC of India Ltd
(ARCIL) and ACE seemed the strongest candidates for licences in the near future, also because they were being promoted by large and public sector institutions.
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