State-owned IDBI Bank Ltd on Monday said it has sold 1% stake in Small Industries Development Bank of India (Sidbi) for an undisclosed amount in a bid to mobilise funds by exiting non-core business.
The bank has sold 53,19,220 shares constituting 1% of the paid up capital of Sidbi, IDBI Bank said in a regulatory filing. Without disclosing the name of the buyer, the bank said, the sale took place on 22 September.
Earlier this year, IDBI Bank had said it plans to dilute stake in some non-core businesses to shore up capital base. The board of the bank had approved in-principle proposal to divest some of its non-core investments, subject to compliance with all applicable laws and regulations and final approval obtained for each transaction.
Sidbi has earned profit of Rs1,120 crore for the fiscal year 2016-17, marginally lower than Rs1,177 crore earned in the previous fiscal year. Sidbi was originally 100% owned by IDBI, when it was a term lending institution. Later in 2000, it divested 51% stake in favour of government owned banks and insurance companies.
On Monday, IDBI Bank shares closed 1.57% lower to Rs53.15 on BSE, while the Sensex fell 0.93% to close at 31,626.63 points.
Source: Mint