INSUBCONTINENT EXCLUSIVE:
The Mumbai-based bank had raised Rs 540 crore in June 2016.State-run Bank of India is looking to raise nearly Rs 1,000 crore through selling
stake in some of its non-core assets and real estate properties
The bank expects to raise around Rs 800 crore through sale of its stake in non-banking finance company - STCI Finance - and in Sidbi, by the
third quarter of the current financial year.The lender has also lined up some of its real estate assets to sell and expects to raise nearly
Rs 200 crore through the sale, a source said
The lender holds 29.96 per cent stake in STCI Finance, while it owns 2.84 per cent in Sidbi
"The bank is planning to sell its entire stake in STCI Finance
It expects to raise around Rs 500 crore from the deal," the source said.The government-owned bank is hoping to raise another Rs 300 crore
through the Sidbi deal, he said
It has already appointed nine merchant bankers to scout for potential buyers
Last year also, the public sector lender had planned to sell its stake in STCI Finance but dropped it after the bids received were below
STCI Finance is a systemically important non-deposit taking NBFC, offering loans in the areas of capital markets, real estate, corporate
finance and structured finance
It has two subsidiaries - STCI Primary Dealer and STCI Commodities.The Mumbai-based bank had raised Rs 540 crore in June 2016 by selling 18
per cent stake in its life insurance venture - Star Union Dai-iche Life Insurance
Currently, the bank owns 28.96 per cent, while the Union Bank of India and the Dai-ichi Life Insurance hold 25.10per cent and 45.94 per cent
respectively in Star Union Dai-ichi Life Insurance
In the quarter ended June 30, 2018, the bank reported 8.44 per cent increase in its net profit at Rs 95.11 crore as against Rs 87.71 crore
has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
