IDBI Bank approves divestment of its non-core business
IDBI Bank in a BSE filing said, The board of directors has approved in-principle, the proposal to divest some of its non-core investment subject to compliance with all applicable laws and regulations and subject to final approval to be obtained for each transaction by delegated authority.
In its meeting held on Tuesday, IDBI Bank approved divestment of some its non-core investments.
IDBI Bank in a BSE filing said, "The board of directors has approved in-principle, the proposal to divest some of its non-core investment subject to compliance with all applicable laws and regulations and subject to final approval to be obtained for each transaction by delegated authority."
Since last year the bank has been planning to divest some of its non-core business in order to raise capital.
On May 24, 2016, IDBI Bank said that during quarter ended March 2016, the bank raised about Rs 450 crore by selling some of its non-core holdings. The bank was able to monetize a part of its stake in National Stock Exchange (NSE) and Care Ratings that time.
As per IDBI Bank's FY15 annual report, the bank has its equity holding in Stock Holding Corp. of India Ltd, National Securities Depository Ltd (NSDL), Clearing Corp. of India Ltd and Asset Reconstruction Co. (India) Ltd among others.
Till last fiscal year (FY16), the bank had non-core assets of Rs 3000 crore.
To curb the needs of capital requirement under banking system due to rising non-performing assets, FM Arun Jaitley announced in the month of March 2016, that public sector banks (PSBs) can divest their holding in non-core assets to raise resources internally to meet their capital requirements.
Recently, Canara Bank decided to divest 13.45% in Can Fin Homes by March-end.
Shares of IDBI Bank was trading flat at Rs 83.05 per piece on BSE.
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