A street side vendor wait for customers at a stall outside a Bank of India (BOI) branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Bank Of India Invites Bids For Stake Sale In Three Associate Companies

State-run Bank of India Ltd. on Friday invited bids for sale of its stake in three associate companies—STCI Finance, Small Industries Development Bank of India and Equifax Credit Information Services.

Earlier this week, the public lender said it was looking to raise nearly Rs 1,000 crore through stake sale in some of its non-core assets and real estate properties. It has floated a Request for Proposal for the stake sale “by asking Bid through Empanelled Merchant Bankers/Direct Bidding”, according to a stock exchange filing.

The bank had earlier said it expects to raise around Rs 800 crore through sale of its stake in STCI Finance and SIDBI, by the third quarter of 2018-19. 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.

Bank of India holds 29.96 percent stake in STCI Finance and 2.84 percent in SIDBI.

Last year too, the bank had planned to sell its stake in STCI Finance but dropped it after the bids received were below expectations. The Mumbai-based bank had raised Rs 540 crore in June 2016 by selling 18 percent stake in its life insurance venture Star Union Dai-ichi Life Insurance.

STCI Finance, an non-banking financial firm, offers loans in the areas of capital markets, real estate, corporate finance and structured finance. It has two subsidiaries - STCI Primary Dealer and STCI Commodities.