IDBI BANK MAY OFFLOAD 5% IN CLEARING CORP OF INDIA

MUMBAI: IDBI Bank Ltd has decided to sell its entire 5% stake in Clearing Corp of India Ltd (CCIL), according to two people aware of the development, as it looks to strengthen its weak capital base through the sale of assets that are not central to its main business.

The bank is aiming to garner around ₹5,000 crore in this financial year through sale of non-core assets, IDBI Bank chief Mahesh Kumar Jain had said in June.

IDBI Bank has invited expressions of interest from entities interested in buying its stake in CCIL. IDBI Capital Markets & Securities Ltd has sought bids on behalf of the bank.

In June, the bank sold 2.5% stake in CCIL, a clearing and settlement platform for transactions in fixed income market include those related to foreign exchange. Following this stake sale, the bank “received serious enquiries for its balance stake as well,” it said in a statement.

According to IDBI Bank, as part of its turnaround strategy, it is actively pursuing similar opportunities to monetise its noncore assets and investments and has appointed an adviser for strategic sale of “one of its major subsidiaries.”

It added that selection of advisers for other identified investments in subsidiaries, associates, and joint ventures are at an advanced stage and would be concluded shortly.

The bank holds 48% stake in joint venture IDBI Federal Life Insurance Co. Ltd.

Besides the insurance joint venture, the bank has a stake in IDBI Trusteeship Services Ltd, IDBI Asset Management Ltd, Small Industries Development Bank of India, National Securities Depository Ltd, NSDL E-governance Infrastructure Ltd, and National Stock Exchange of India Ltd, among others.