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Central Bank of India likely to miss target to sell IL&FS' stake

15 Mar 2014 Evaluate

Public-sector bank, Central Bank of India is likely to miss its target to sell its 8.34% stake in unlisted Infrastructure Leasing & Financial Services (IL&FS) before the end of March 2014, because IL&FS' complex structure is making it difficult for bankers to find a buyer who offers the right price.  However, the bank is expecting that the proposed IL&FS stake sale may fetch it around $500 million or about Rs 3,100 crore.

IL&FS is registered as a core investment company with the Reserve Bank of India. The company has assets of over Rs 46,000 crore. At present, Life Insurance Corporation (LIC) is the largest shareholder of IL&FS with a 25.34% stake, followed by Japan-based Orix Corp at over 23% and IL&FS Employee Welfare Trust, which has an about 14% ownership.

Central Bank of India has been serving more than 3,50,00,000 account holders through its 4,400 branches, 6 extension counters, 29 Satellite offices, 1,970 ATMs and 2,413 ultra small branches (USBs).

Peers
Company Name CMP
State Bank Of India 948.20
PNB 116.60
Bank Of Baroda 237.60
Canara Bank 119.75
Union Bank Of India 172.85
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