NABARD purchases additional 3 per cent stake in SIDBI: reports

Apex development finance institution NABARD, National Bank for Agriculture and Rural Development in a deal with public sector lender IDBI Bank, purchased an additional 7 per cent stake in Small Industries Development Bank of India (SIDBI) for Rs 900 crore, according to a leading news daily. 

Following the development, marking the largest investment made by the institution, NABARD will own a total of 10 per cent stake in SIDBI.  

Deteriorating asset quality has affected IDBI Bank’s prospects, leading the PSB to look out to sell its non-core assets. The lender had put its entire stake in SIDBI, summing up to 16.25 per cent, on block since August 2017. 

The bank had successfully sold 10 per cent of its total stake in SIDBI to several buyers, including 7 per cent stake to NABARD and 2 per cent to Life Insurance Corporation of India.

On Monday’s intraday trade, IDBI Bank was trading lower by nearly 1 per cent on BSE. The stock stood at Rs 52.85 per share, down by 0.94 per cent on BSE. While, S&P BSE Sensex was trading at 31,863.16 level, higher by 0.15 per cent and NSE Nifty50 was trading at 9,991.35 level, higher by 0.12 per cent on Monday.