IDBI Bank on Friday said that its board has provided a nod to sale of stake in asset reconstruction company (India) Ltd (ARCIL) subject to regulatory compliance.
IDBI Bank on Friday said that its board has provided a nod to sale of stake in asset reconstruction company (India) Ltd (ARCIL) subject to regulatory compliance. The bank board granted in-principle approval to divest 19.18 per cent stake in ARCIL, IDBI Bank said in an exchange filing. “..Board of Directors of IDBI Bank Ltd., at its meeting held on Friday, September 27, 2019, granted in-principle approval to divest 6,23,23,800 equity shares (19.18%) of Asset Reconstruction Company (India) Ltd. (ARCIL) held by IDBI Bank, partly or wholly, subject to compliance with all applicable laws, regulations and guidelines,” IDBI Bank said in a regulatory filing.
In 2018, public insurer Life Insurance Corporation (LIC) acquired a 51 per cent controlling stake in IDBI Bank. IDBI Bank recently sought bids from asset reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs) and other financial institutions to sell 20 non-performing loans (NPAs) worth Rs 9,756 crore. “IDBI Bank intends to sell its identified non-performing assets on cash or cash: security receipts basis. However, please note that the sale will be subject to final approval by the competent authority of the bank,” the Bank said in a notice.
IDBI Bank in the first quarter of fiscal year 2020 reported net loss widened to Rs 3,800.84 crore for the first quarter ended June 30, 2019, due to higher provisioning and lower net interest income. “The private sector lender had posted a net loss of Rs 2,410 crore in the year-ago period,” IDBI Bank said in a filing to the Bombay Stock Exchange. The bank had reported a net loss of Rs 4,918.44 crore in March quarter. Shares of IDBI Bank ended the day at Rs 33.55, down 2.15 points, or 6.02 per cent on NSE.