National Bank for Agriculture and Rural Development (NABARD) has reportedly bought an additional 7 percent stake in Small Industries Development Bank of India (SIDBI) for Rs 900 crore from public sector lender IDBI Bank. This takes NABARD's share in SIDBI to 10 percent.
The declining asset quality is said to have made IDBI Bank sell off its non-core assets. In August, the lender put its entire 16.25 percent stake in SIDBI on the block and has been trying to find buyers for it ever since.
Last month, the bank informed the exchanges that it had managed to sell 10 percent of its stake in SIDBI to various buyers. According to data provided by the Securities and Exchange Board of India (SEBI), 7 percent was bought by NABARD, while Life Insurance Corporation of India bought 2 percent.