IDBI Bank has invited fresh bids for its balance stake in SIDBI (Small Industries Development Bank of India). IDBI now owns 13.71 per cent stake in SIDBI.

IDBI had held 16.25 per cent stake earlier but recently 2 per cent was picked up by Life Insurance Corporation of India and 0.5 per cent by Vijaya Bank. The new bids will close on September 14.

IDBI’s plan to sell stake in SIDBI is part of its overall strategy to sell non-core assets. In June, the bank sold 2.5 per cent stake in CCIL, a clearing and settlement platform.

A sharp reduction in loan-loss provisions helped IDBI Bank pare its net loss by 73 per cent in the first quarter ended June 30, 21017, compared with the preceding quarter. However, it continued to reel under asset quality pressure.

In the reporting quarter, the public sector bank’s net loss stood at ₹853 crore against a net loss of ₹3,200 crore in the preceding quarter. In the June 2016 quarter, the bank had posted a net profit of ₹241 crore. Net interest income (the difference between interest earned and interest expended) was down 18 per cent year-on-year at ₹1,402 crore. Other income too declined 21 per cent y-o-y at ₹720 crore.

Gross non-performing assets (GNPAs) rose by ₹5,420 crore during the reporting quarter to ₹50,173 crore.

The RBI had imposed sanctions on state-run lender IDBI Bank after its financial position weakened.

IDBI Bank is one of the first lenders to attract sanctions after the RBI revised its prompt corrective action framework.

Such sanctions are imposed if a bank breaches certain level of net non-performing assets, return on assets and capital adequacy ratio.