Union Bank of India, Canara Bank sell 12% stake in asset reconstruction company

Union Bank of India and Canara Bank are selling a combined 12% stake in India SME Asset Reconstruction Co. Ltd.

Union Bank agreed to divest an 8% stake in the Mumbai-based asset reconstruction company to Dhansamridhi Finance Pvt. Ltd. for an undisclosed sum.

Meanwhile, Canara Bank is selling its entire 4% interest in India SME Asset Reconstruction for 39.2 million rupees. The deal involves the transfer of the lender's 4,000,000 shares in the company at 9.80 rupees apiece to an unnamed buyer.

Both transactions are subject to regulatory approvals, according to separate April 6 filings.

As of April 6, US$1 was equivalent to 75.99 Indian rupees.