IDBI looks to sell 6 prime properties in Mumbai

IDBI Bank plans to sell six properties in prime areas of Mumbai in the current financial year to tide over issues related to capital and profitability. The lender seeks to hire a real estate consultant to advise on and facilitate the sale of assets. "The aim is to conclude the transactions as early as December, so that it reflects in our Oct-Dec earnings. However, the bank is aware that there can be delays for approvals, so may be 1-2 sales may spill over to Jan-Mar," a senior official with IDBI Bank said.

The bank intends to sell two residential properties and four commercial properties, according to details on the bank's website. The residential properties are in the well-known Rajesh Mansion and Mittal Castle plots in the city. The commercial properties on offer include the once iconic Minerva Theatre land plot, a unit in Corporate Park Chembur, an entire floor in Mafatlal Centre at Nariman Point and an office area in Mittal Court, Nariman Point. The last date for submission of bids by prospective real estate consultants is Sep 4, and the technical bids will be opened on the same day. "The endeavour is to speed up the selection of the realty advisor", the IDBI Bank official said.

Faced with rising asset quality problems, IDBI Bank's Apr-Jun loss was at 8.53 bln rupees, with capital adequacy ratio of 11.69% as on Jun 30.