This week, the state-owned lender also reported fraudulent loans worth Rs. 772 crore were issued from five of its branches in Andhra Pradesh and Telangana.
In the midst of balance sheet troubles and handling frauds, government-owned IDBI Bank has garnered a total of Rs 4,400 crore through sale of non-core assets during the year.
The bank has been selling non-core assets to shore up its capital and has concluded another deal by selling its building in the Mumbai’s suburban commercial location Bandra Kurla Complex (BKC) to the Securities Exchange Board of India for about Rs 1,000 crore.
“IDBI Bank has entered into sale deed for sale of its BKC, Mumbai situated office property to Securities Exchange Board of India,” the state-run lender said in a mandatory filing to the stock exchanges.
The proceeds from the seven-storey building with a 3.41 lakh square foot of built-up area, now add to its capital raised to the tune of Rs 4,400 crore including other sales, said an official aware of the numbers.
Earlier this fiscal, the lender had sold 4.89 percent stake in SIDBI, and 2.5 percent stake in CCIL, among others and had raised Rs 3,400 crore. The government has been encouraging public sector banks to sell their non-core investments for raising capital.
This week, the state-owned lender also reported fraudulent loans worth Rs. 772 crore were issued from five of its branches in Andhra Pradesh and Telangana. These loans, meant for fish farming business, were sanctioned during fiscal years 2009-2013.
Among other concerns over IDBI bank’s financial health, as per reports, the Reserve Bank of India (RBI) has written to the finance ministry expressing concern over what it said was the poor financial position of state-run IDBI Bank and called on the government to take remedial action.