Idbi To Sell Bank Stake By Sept-End
The Industrial Development Bank of India (IDBI) is likely to place 26 per cent of IDBI Bank's capital through a preference issue by September-end.
"IDBI is likely to go in with a preferential issue by September 30 this year. There may be a delay of around 15 to 20 days," P P Vora, chairman and managing director, said at the sidelines of the institution's eighth annual general meeting here today.
Chrysalis Capital, Ankar Capital and New Bridge Capital are in talks to pick up the stake. IDBI is, however, not comfortable with some covenants put forth by the parties.
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On the type of investors Vora said, "The investors do not have 'onerous' conditions the way the FIIs have." He, however, refused to comment on the type of investors IDBI is speaking to.
IDBI's stake in the bank is pegged at 57.14 per cent and another 14 per cent is held by the Small Industries Development Bank of India (Sidbi). Sources said that IDBI is looking at placing a preferential issue with some Indian investors.
Speaking at the AGM on the issue of universal banking, Vora said, "The first stage of IDBI will be to convert itself into a corporate entity. IDBI will then merge itself with a large public or private bank."
He said, "IDBI Bank is not an attractive proposition because of its size. However all the various options will be considered."
On the problem of non-performing assets faced by IDBI, Vora said, "We are optimistic owing to the current year's performance in steel, cement, man-made fibres, paper industry. However, the performance in light of the drought-like situation will have to be reviewed. The Foreclosure and Securitisation Act can help us and as a first step 17 notices have already been issued with another five more in the process of being sent. The loan amount in this notices is around Rs 1,640 crore. However some of them have already come forward to pay their dues."