Shares of Andhra Bank jumped over 5 per cent early on Tuesday after the state-owned lender said it will divest its stake either fully or partially in various joint venture firms.
The scrip was trading 5.74 per cent up at Rs 30.40 at around 9.32 am. The Sensex was up 0.61 per cent at 35,164.
The board of the bank, at its meeting on November 3, accorded its approval for divestment of bank’s stake in full or in part in joint venture investments — ASREC India Ltd, 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 per cent), Andhra Bank (30 per cent) and UK’s wealth and investment management firm Legal & General (26 per cent).
India International Bank (Malaysia) Berhad (IIBM) is a JV of state-owned Bank of Baroda (40 per cent), Indian Overseas Bank (35 per cent) and Andhra Bank (25 per cent) that began its operations in July 2012.
ASREC, owned by Allahabad Bank (27.04 per cent), Bank of India (26.02 per cent), Andhra Bank (26.02 per cent), Indian Bank (11.22 per cent), LIC (9.18 per cent), Deutsche Bank (0.51 per cent), is into securitisation and reconstruction of financial assets business.
Andhra Bank earlier last week posted a net loss of Rs 434 crore for the second quarter to September as against a net loss of Rs 385.11 crore in the same period last year.
