IDBI Bank has announced that it is proposing to sell its stake in Sidbi. The bank has 16.25% holding Sidbi and is looking at selling the entire stake. It has put 16 August as the last date for bids. State Bank of India has the largest stake of 16.7% in Sidbi, the central government 15.4%, and LIC 12.2%. The other investors have less than 4 per cent stake which includes public sector banks and state-owned insurance companies. Sidbi was originally 100% owned by the erstwhile IDBI. In 2000, it divested 51% stake in favor of government owned banks and insurance companies. Later in 2004, IDBI Bank sold 30% stake to banks and other term lending institutions for a value of Rs 400 crore. The bank has appointed SBI Caps as its merchant bankers but has not indicated a reserve price for the stake.
