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June 2018, No. 87


Banking

Our Goal Is Banking Not Running Enterprises!

 

Managing Director of the Bank of Industry and Mine (BIM) Ali Ashraf Afkhami after trading the shares of the bank’s investment company, stated: “Our goal is banking, not running enterprises. Managing economic enterprises was imposed on our bank at a certain juncture of time.”

Speaking to the BIM news website, Afkhami outlined the policies of the bank in trading the companies under its cover. He said the BIM as a development bank and due to the nature of its activities has not been seeking to run enterprises and that the current business establishments under its cover were all delegated to the bank under certain circumstances.

He pointed out that the number of BIM subsidiary companies was very small compared to other banks in the country, noting: “We have started implementation of the BIM divestment policy since the calendar year 1392 (2013/14) and during this time a large number of subsidiaries have been transferred. But the transfer of the BIM Investment Company due to the particular status and successful record was more important.

Afkhami added that certain regulations may have caused a delay in divestitures, but his bank never wanted to have these enterprises and instead was more interested in developing the banking capacity and increasing international interactions.

Commenting on trading the BIM Investment Company, he said: “The company is one of the successful and profitable companies in the stock exchange. In line with the government policy of divestiture and the emphasis placed by minister of economic affairs and finance we succeeded in successfully transferring 51 percent of the company stock on Feb. 13 after identifying legally eligible buyers.”

Afkhami thanked the ministers of economic affairs and finance, and industry, mine and trade for their full support for the transfer of the subsidiaries to the private sector. “After the 51 percent stake in the BIM Industry and Mining Investment Company was offered at the Stock Exchange, Iran Industrial Development Investment Company was picked as the buyer out of some competitors under the supervision of the Securities and Exchange Organization.

Afkhami noted that the BIM has been among pioneers in the country’s banking system in several areas such as opening of L/Cs after Iran Nuclear Deal (JCPOA), acquisition of the foreign credit lines, and establishing brokerage relations with 90 banks in 36 countries, and today by trading 2.295 billion shares of the BIM Investment Company at 4,360 billion rials.

 

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  June 2018
No. 87