Life Insurance Corp. of India-owned IDBI Bank has decided to sell its stakes in 19 companies as part of a strategy to sell non-core assets and revive its fortunes.
The bank is looking for bidders for its shares which can fetch Rs 170 crore if sold at the face value, according to a notice by the lender. The last date to submit bids is August 6.
The 19 companies include Neelachal Ispat Nigam, Haldia Petrochemicals, Gujarat NRE Coke and Konaseema Gas Power.
The bank, which has the worst asset quality among Indian lenders, had chalked out a turnaround plan which included selling non-core assets in March.
Two months later, the bank put its mutual fund business on the block, joining a bunch of lenders in selling their asset management arms to ease the burden of high bad loans. It had appointed ICICI Securities as the adviser to sell its stake in IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd.
Last month, VCCircle reported that the bank was likely to sell its stake in the National Stock Exchange, National Securities Depository Ltd and Small Industries Development Bank of India this year.
IDBI Bank reported a net loss of Rs 4,918 crore for the January-March quarter and Rs 15,116 crore for the financial year 2018-19.
In 2017-18, the bank earned a capital gain of Rs 3,872 crore by selling non-core assets and real estate, its annual report shows. It had sold its offices at Bandra Kurla Complex and Nariman Point in Mumbai, including few unutilised residential flats in Mumbai and Shimla.