New Delhi, April 8: Private sector lender IDBI Bank on Wednesday said it has targeted to raise up to Rs 7,500 crore through rupee bond in the current fiscal.

The Board of Directors, at its meeting held on Wednesday, April 8, 2020, has approved the rupee bond borrowing limit of Rs 7,500 crore for FY 2020-21 to be borrowed in one or more tranches, IDBI Bank said in a regulatory filing.

The borrowing programme comprises additional Tier I bonds up to Rs 3,000 crore, Basel III Tier 2 bonds up to Rs 3,500 crore and senior/ infrastructure bonds up to Rs 1,000 crore by way of private placement during 2020-21. India's GDP May Shrink to Multi-Decade Low of 1.6% in FY 2020-21 Due to COVID-19 Pandemic, Says Goldman Sachs.

Separately, it said that the board of directors has also approved the proposal to sell bank's stake of up to 27 per cent in its life insurance joint venture IFLI.

"The Board of Directors, at its meeting ...has approved in principle the proposal to sell IDBI Bank's stake in IDBI Federal Life Insurance Company Limited (IFLI) to the extent of 23-27 per cent," the bank said.

IFLI is a three way joint venture between IDBI Bank (48 per cent as at December 31, 2019), Federal Bank (26 per cent) and Europe's insurance major Ageas (26 per cent). Stock of IDBI Bank closed at Rs 19.85 apiece on the BSE, down 1 per cent from previous close.

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