TPG Cap­i­tal said to vie for stake in IDBI Bank

The Pak Banker - - COMPANIES/BOSS -

MUM­BAI: TPG Cap­i­tal is among in­vestors vy­ing to ac­quire a stake in In­dian state-owned len­der IDBI Bank Ltd, peo­ple with knowl­edge of the mat­ter said.

The len­der has reached out to po­ten­tial in­vestors in­clud­ing pri­vate equity firms and mul­ti­lat­eral in­sti­tu­tions, one of the peo­ple said, ask­ing not to be iden­ti­fied as the in­for­ma­tion is pri­vate. A for­mal process for the stake sale hasn't started yet, ac­cord­ing to the peo­ple.

IDBI Bank is seek­ing to bol­ster its bal­ance sheet af­ter record­ing bad debts that to­taled 8.94% of its loans at the end of De­cem­ber. TPG would like to in­vest $1 bil­lion an­nu­ally in In­dia over the next three years if it can find the right in­vest­ments, co-founder Jim Coul­ter said in a Wed­nes­day in­ter­view. Shares of IDBI Bank rose as much as 3.2% on Thurs­day to Rs.67.75. It was trad­ing up 1.2% to Rs.66.45 at 3:21 pm in Mum­bai.

The In­dian len­der ap­pointed ad­vis­ers in­clud­ing Bank of Amer­ica Corp., Cit­i­group Inc. and Credit Suisse Group AG to ar­range a share sale of as much as Rs.3,770 crore, peo­ple with knowl­edge of the mat­ter said ear­lier. IDBI Bank has ap­proached the World Bank's In­ter­na­tional Fi­nance Corp. about a po­ten­tial in­vest­ment, the peo­ple said at the time.

TPG de­clined to com­ment in an e-mail, while IDBI Bank chief fi­nan­cial of­fi­cer N.S. Venkatesh said he couldn't com­ment. IDBI Bank won govern­ment ap­proval in De­cem­ber to sell stock to in­sti­tu­tional in­vestors. The In­dian govern­ment owns 80.2% of the bank, ac­cord­ing to ex­change fil­ings.

TPG in 2004 con­sid­ered ac­quir­ing Global Trust Bank Ltd, a len­der based in south In­dia, through its af­fil­i­ate fund New­bridge Cap­i­tal, one of the peo­ple said. Later that year, Global Trust Bank was or­dered to cease busi­ness and merged with state-run Ori­en­tal Bank of Com­merce af­ter bad loans de­pleted its cap­i­tal. -

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.