IDBI Bank has apprised potential asset valuers that it holds deferred tax assets totaling ₹11,520 crore along with 120 properties in major cities, including Mumbai, Pune, and Chennai.
In response to pre-bid inquiries from these valuers, the Department of Investment and Public Asset Management (DIPAM) disclosed that the bank owns 68 properties in Mumbai, 20 in Pune, nine in Chennai, and seven in Ahmedabad. Additionally, it possesses six properties in Kolkata, and five each in Delhi and Hyderabad.
DIPAM clarified that the intangible assets on IDBI Bank’s balance sheet primarily comprise deferred tax assets amounting to approximately ₹11,520 crore. This typically refers to an excess tax payment made by an entity, which can be used to offset future tax obligations.
Furthermore, DIPAM indicated that the asset valuer would also be tasked with identifying intangibles not listed on the bank’s balance sheet, such as the brand name and branch network, and assigning a value to them.
Providing specifics about the asset properties in the seven cities, DIPAM informed the valuer that these assets constitute 94 percent of the total written down value (after accounting for depreciation) of IDBI Bank’s fixed assets.
Responding to queries regarding a comprehensive list of the bank’s assets and properties, DIPAM assured that all relevant documents and a detailed list of IDBI Bank’s fixed assets would be furnished to the appointed asset valuer after the execution of a confidentiality agreement.
The government, in collaboration with LIC, is in the process of divesting nearly 61 percent of its stake in IDBI Bank and has received numerous Expressions of Interest (EoI). As part of this sale process, an asset valuer is being sought to conduct a thorough valuation of IDBI Bank’s assets for its strategic sale. The deadline for submitting bids by the asset valuer is October 30.
The valuer’s responsibilities will include assessing the value of IDBI Bank’s investments, loans, advances, fixed assets, and other holdings.
DIPAM also provided the total count of properties held by the bank in the seven cities, which includes 68 in Mumbai, 20 in Pune, 9 in Chennai, 7 in Ahmedabad, 6 in Kolkata, and 5 each in Delhi and Hyderabad.
It was clarified that while assets of IDBI Bank’s subsidiaries and associates will not be individually valued, the asset valuer is expected to evaluate the bank’s investments in these entities based on accepted valuation standards.
Additionally, the valuer will be tasked with identifying intangibles not reflected on IDBI Bank’s balance sheet, such as the brand name and branch network, and determining their value.
As of now, the government and LIC collectively hold a 94.72 percent stake in IDBI Bank. Following the strategic sale, this ownership will reduce to 34 percent, with the government holding 15 percent and LIC holding 19 percent. The bids received are currently under scrutiny by the government and RBI, with clearance from both authorities necessary for the second stage of the bidding process.
