Dena Bank to raise Rs 235 cr from sale of non-core assets

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Published: July 5, 2018 2:15:09 AM

Mid-sized public-sector lender Dena Bank has sought bids for its stakes in NSDL e-Governance Infrastructure, National Securities Depository (NSDL) and Small Industries Development Bank of India (Sidbi) to raise Rs 235 crore, according to a public notice.

Dena Bank, banking sector, banking industryDena Bank (Reuters)

Mid-sized public-sector lender Dena Bank has sought bids for its stakes in NSDL e-Governance Infrastructure, National Securities Depository (NSDL) and Small Industries Development Bank of India (Sidbi) to raise Rs 235 crore, according to a public notice.

“The bank is proposing to sell (i) 6,25,000 equity shares of face value Rs 10 each of NSDL e-Governance Infrastructure, which is 1.563% of the total paid-up equity capital with a floor price of `910 per share, (ii) 2,25,000 equity shares of NSDL which is 0.563% of the total paid-up equity capital at floor price of `860 per share, (iii) 4,00,000 equity shares of NSDL which is 1.00% of the total paid-up equity capital at floor price of Rs 860 per share, (iv) 48,00,000 equity shares of Sidbi which is 0.90% of the total paid-up equity capital with a floor price of `260 per share,” Dena Bank said in the notice on Wednesday.

The last date for the submission of bids is July 25. Dena Bank’s move to offload its stake in the three companies is the latest in a series of sales of non-core assets by public-sector banks (PSBs) to beef up their capital position. The lender is one of the 11 PSBs under the Reserve Bank of India’s (RBI) prompt corrective action (PCA) framework and it has been barred from issuing fresh loans. In recent months, other banks under PCA have also resorted to non-core asset sales to boost their non-interest income.

In March, Central Bank of India put on the block a 3.11% stake in JM Financial Asset Reconstruction Company. IDBI Bank has moved to sell its entire 30% stake in NSDL E-governance Infrastructure and a 7% stake in National Securities Depository. Bank of India has offloaded its entire 5% stake in credit bureau TransUnion Cibil through a sale of shares to US-based TransUnion International.

PSBs not under PCA are also trying to cash in on their non-core assets. Last month, Punjab National Bank raised `109 crore by selling its stake in rating agency Icra. Union Bank of India has sold a 40% stake in its mutual fund business to Japan’s Dai-ichi Life Insurance Company.

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