IDBI Bank sells 1 pc stake in Sidbi

NEW DELHI: State-owned IDBI Bank today said it has sold one per cent 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 per cent 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 September 22.

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 Rs 1,120 crore for the fiscal year 2016-17, marginally lower than Rs 1,177 crore earned in the previous fiscal year.

Sidbi was originally 100 per cent owned by IDBI, when it was a term lending institution. Later in 2000, it divested 51 per cent stake in favour of government owned banks and insurance companies.