Tinu,
Yes, the 2610 does support IPSEC VPN.
You need a crypto image to configure IPSEC. Please use the feature navigator to research Software, Feature, Platform, Image.
Please refer the below URL for details.
http://tools.cisco.com/ITDIT/CFN/jsp/index.jsp
In addition to the above information, I wanted to let you know that the 2610 are End of Life. Please refer the below URL for details:
http://www.cisco.com/en/US/products/hw/routers/ps259/prod_eol_notice09186a008032d4c2.html
I hope it helps.
Regards,
Arul