IDBI Bank sells 9% stake in Sidbi

New Delhi: State-owned IDBI Bank on Wednesday said it has sold 9 percent stake in Small Industries Development Bank of India (Sidbi) for an undisclosed amount in a bid to mobilise funds by exiting non-core business.

IDBI Bank has sold further 4,80,41,092 equity shares constituting 9.03 percent of the paid up capital of Sidbi on September 26 and 27, IDBI Bank said in a regulatory filing.

However, the bank did not disclose name of the buyer.

Earlier this week, the bank sold one percent stake in Sidbi.

Earlier this year, IDBI Bank had said it plans to dilute stake in some non-core businesses to shore up capital base.

The board of the bank had approved in-principle proposal to divest some of its non-core investments, subject to compliance with all applicable laws and regulations and final approval obtained for each transaction.

Sidbi has earned profit of Rs 1,120 crore for the fiscal year 2016-17, marginally lower than Rs 1,177 crore earned in the previous fiscal year.

Sidbi was originally 100 percent owned by IDBI, when it was a term lending institution. Later in 2000, it divested 51 percent stake in favour of the government owned banks and insurance companies.