At a time when the government has asked Industrial Development Bank of India (IDBI) to provide it with liquidity shortfall details, the financial institution (FI) itself has written to the finance ministry to offload all its equity in state financial corporations, valued by it at Rs 350 crore, to Small Industries Development Bank of India (Sidbi).
Government officials said IDBI has once again taken up the issue with the Centre after a gap of about one-and-a-half years. Together with reduction of stake in IDBI Principal Asset Management Company, where the FI intends to reduce its holding from 51 per cent, IDBI hopes to mop up about Rs 400 crore.
IDBI sources said that the proposal to sell stake in IDBI Principal is at the moment stuck due to the valuation of shares, but the FI is keen to reduce its holding particularly because of Principal Financial Group
