IDBI bank board approves divesting stake in ARCIL

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 percent stake in ARCIL, IDBI Bank said in an exchange filing. “Top managerial staff of IDBI Bank Ltd., at its gathering hung on Friday, September 27, 2019, granted a principle approval to divest 6,23,23,800 equity shares (19.18%) of Asset Reconstruction Company (India) Ltd. (ARCIL) held by IDBI Bank, somewhat or completely, subject to compliance with all applicable laws, guidelines and regulations,” IDBI Bank said in a regulatory filing.

In 2018, public insurer Life Insurance Corporation (LIC) gained a 51 percent 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 ₹9,756 crore.

“IDBI Bank expects to sell its identified non-performing assets on cash or cash: security receipts basis. In any case, kindly note that the sale will be subject to final approval by the competent authority of the bank,” the Bank said in a notice.