IDBI puts CCIL and SIDBI stake on the block




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        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES Mumbai: IDBI Bank, one of the six lenders which are under special watch of the Reserve Bank of India (RBI), has stepped on the pedal to shed its non-core assets as it seeks to stay afloat amidst the rise in NPAs.

        On Friday, the bank’s board approved the sale of the remaining 13.71% stake in the Small Industries Development Bank of India (SIDBI). A public notice also said that the bank has put its 2.5% stake in the Clearing Corporation of India Ltd (CCIL) on the block.

        In a newspaper advertisement the bank invited expressions of interest (EoI) for the sale of 12.5 lakh shares making about 2.5% stake in CCIL, a fixed income clearing and settlement platform. The latest sale whenever it fructifies when ensure the total exit of IDBI Bank from CCIL. It has a sold an identical 2.5% stake on 30 June.

        Sale of non-core assets are central to the bank’s strategy which aims to garner around Rs5,000 crore in this financial year in order to shore up the bank’s capital base, CEO Mahesh Kumar Jain had said in June.

        IDBI is one of the six lenders which is under RBI’s so-called prompt corrective action (PCA), which restricts banks announcing dividend, opening branches, hiring and giving loans to companies rated below investment grade.

        It had reported a net loss of Rs853.01 crore for the three months ended June 2017 compared with a profit of Rs241.10 crore a year ago as bad loans rose to a record high. The bank’s gross non-performing assets (NPAs) soared to 24.11% in the first quarter, displacing Indian Overseas Bank which had a gross NPA ratio of 23.6%.




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