As part of its strategy to unlock the value of its investments in subsidiaries, associates and joint ventures, Bank of India on Monday said it is planning to sell its partial/entire stake in STCI Finance.
The public sector bank holds 1,13,83,781 equity shares representing 29.96 per cent stake in STCI.
In FY17, the bank had sold 18 per cent stake in Star Union Dai-ichi Life Insurance for ₹540 and earned profit of ₹495 (net of tax ₹323.69). Post sale, the bank’s share fell to 28.96 per cent.
STCI is a systemically important non-deposit taking non-banking finance company (NBFC) providing loans against shares, corporate loans against properties, construction finance and corporate loans.
The NBFC has two wholly owned subsidiaries — STCI Primary Dealer (STCIPD) and STCI Commodities.
STCIPD undertakes trading in government securities, corporate bonds, money market instruments, interest rate swaps and trading in equity (both cash and F&O). STCI Commodities provides brokerage, investment and advisory services in the Indian commodities market. STCI Finance also holds 10 per cent equity stake in Clearing Corporation of India.