IDBI Bank sells its shares in NSDL and AFLI

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IDBI Bank, controlled by LIC, approved the disposal of its stake in two entities – National Securities Depository Limited (NSDL) and Ageas Federal Life Insurance Company Limited (AFLI) at its recent meeting, according to filings by the exchange.

The Board of Directors has granted approval in principle for the sale of IDBI’s stake of up to 11.10% of NSDL’s share capital through a market-based process. It also approved the sale of 20,000,000 shares of AFLI to Ageas Insurance International NV or Ageas in view of the exercise of the call option by Ageas, according to these documents.

Another highlight of this board meeting was that the bank approved the rupee bond borrowing limit of Rs 8,000 crore for 2022-23. Rs bond borrowing limit can be borrowed in single or multiple tranches comprising of Additional Tier Bonds (AT-1) up to Rs 3,000 crore and Senior/Infrastructure Bonds up to Rs 1,000 crore by way of private placement in FY23, according to a regulatory filing.

For the October-December quarter of FY22, the LIC-controlled bank reported a 53% increase in net income, primarily due to a lower cost of funds which led to an increase in revenue Net Interest Margin (NII) and Net Interest Margin (NIM).

Net profit fell from Rs 378 crore a year ago to Rs 578 crore in the October-December quarter. The NII rose 31% to Rs 2,383 crore as the bank’s cost of funds fell 60 basis points year-on-year to 3.79% in December last year.

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