Banks and credit institutions divested 82 trillion rials ($282 million) in assets in one year, an Economy Ministry official said.
According to Abbas Hosseini, deputy minister for banking, insurance, and state-owned companies, the assets included shares and non-financial assets, namely real estate.
Most of the assets were sold in the last fiscal year (ended March 20). “A total of 73 trillion rials worth of assets were divested from Sept. 2021 to March 2022, including 33 trillion rials in shares and 34 trillion rials in surplus real estate,” he was quoted as saying by the ministry’s news website, Shada.ir.
Hosseini reiterated government policy to reduce bank assets to help them improve their balance sheets. In one of the known ambitious divestment plans, state-owned Bank Melli Iran (BMI) intends to sell shares worth 330 trillion rials ($1.13 billion) in petrochemical plants in Arak and Shazand in Markazi Province.
Earlier it published an inventory of 25 properties to be sold in the present fiscal year. The top state bank said it is working to move away from non-banking activities, concentrate on banking operations and bolster lending.
It was unable to sell shares via the stock market nor venues last year apparently due to the continued decline in the bourse.
BMI, however, sold shares 106 trillion rials ($365 million) and 27 trillion rials ($93 million) in fiscal 2020-21 and 2019-20, respectively.
The National Development Investment Group (investment arm of BMI), Iran Khodro (the largest domestic carmaker) Ayandeh Pouya Plan and Development Company, Madan Shekafan Tehran company (a mineral company) and Imen Tarabar Aria (transportation firm) were among the companies BMI has sold so far.
Lenders’ assets have piled up over years mainly due to impaired loans, bad debts, settlement of unpaid government debt to banks, closure of branches and failed investments.
Selling nonfinancial assets are in line with notices given by the government ordering state-owned lenders to give up non-bank operations and focus on their original mandate, namely providing loans/credit to manufactures and businesses.
