Bank Melli Iran, the state-run lender, said the lender has divested its stake in assorted companies worth 133 trillion rials ($492 million).
Divestments were completed in two years with the majority of stocks ceded in the previous fiscal year ending March 2021.
The BMI sold shares 106 trillion rials ($392m) and 27 trillion rials ($100m) worth of shares respectively in fiscals 2020-21 and 2019-20, according to a press release posted on the bank’s public relations website.
National Development Investment Group (investment subsidiary of BMI), Iran Khodro (the largest Iranian automaker) Ayandeh Pouya Plan and Development Company, Madan Shekafan Tehran company (a mineral company) and Imen Tarabar Aria (a transportation firm) were among the companies the BMI divested its stake.
Lenders’ non-banking assets, including shares in various companies plus real estates, are estimated to be worth 900 trillion rials ($3.3 billion), according to Abbas Memarnejad, an official with Economy Ministry. The figure pertains to assets owned by banks and credit institutions affiliated to the government.
BMI said divestments were in accordance with the rules of the Majlis in 2015, based on which banks and credit institutions are also obliged to annually divest at least 33% of their non-banking assets over three years. The obligation covers divestment of shares in listed companies and banks can use the earnings to boost capital.
The rules stipulate that if lenders fail to abide by divestment rules, they have to pay 28% of their income from non-bank activities as tax during the first year of the implementation of the law. In subsequent years, 3 percentage points will be added to the rate until it reaches a maximum of 55%.
Lenders’ assets have piled up over years mainly due to impaired loans, bad debts, settlement of government debts to banks, closure of branches and failed investments.
Financial Performance
In a rare procedure, the major state-controlled lender on Saturday published its financial performance report on Codal.ir, an information website for releasing financial reports of listed companies.
In the report, the BMI said that its income from interest on lending was 404 trillion rials ($1.4b) in the previous fiscal year ending March 20, 2021. That is 23% higher compared with the preceding year’s report, according to the Persian economic website Tejarat News.
State-run lenders for years refused to publish financial reports. They are now obliged to make public their performance after Economy Minister Ehsan Khandouzi instructed all state-controlled companies, including banks and insurance firms, to regularly publish performance reports.
The move is aimed at improving financial transparency and accountability of companies affiliated to the government
