Mumbai: State-owned lender IDBI Bank has sought fresh bids from potential buyers for its remaining 13.71% stake in Small Industries Development Bank of India (Sidbi).

Last month, the bank had mandated SBI Capital Markets to look for a buyer for its entire 16.25% stake in the financial institution but had to extend the date for submission due to tepid investor response. Of the total stake put on the block, 2% was picked up by Life Insurance Corporation of India (LIC) and 0.5% by Vijaya Bank, according to a senior official in the bank. With this, LIC’s stake in Sidbi stands at 14.21% and Vijaya Bank at 0.8%.

The deadline for submission of fresh bids will close on 14 September, said SBI Caps in a public advertisement on Wednesday.

IDBI Bank is the second largest shareholder in Sidbi after State Bank of India, which owns 16.73%. Other shareholders include government of India, which owns 15.4% stake, LIC with 12.21%, Punjab National Bank with 3.99% and other public sector banks and insurance companies.

IDBI’s plan to sell stake in Sidbi is part of its overall strategy to sell non-core assets to raise capital. The bank is aiming to garner around Rs5,000 crore in this financial year through sale of non-core assets, IDBI Bank chief Mahesh Kumar Jain had said in June.

The bank’s capital adequacy ratio improved to 10.92% at the end of June from 10.70% at the end of March, though it was lower than the previous year’s figure of 11.80%. The bank received Rs394 crore from LIC and Rs1,861 crore from the government during the quarter.

According to the bank’s annual report for the year 2015-16, IDBI Bank holds a stake in National Securities Depository Ltd (NSDL), NSDL e-governance Infrastructure Ltd, Biotech Consortium India Ltd, North Eastern Development Finance Corp. Ltd and Pondicherry Industrial Promotion Development and Investment Corp. Ltd.

Apart from these, the bank also holds a stake in subsidiaries like IDBI Asset Management Ltd, IDBI Federal Life Insurance, IDBI Capital Markets Ltd and IDBI Intech Ltd, among others.

In June, the bank sold 2.5% stake in CCIL, a clearing and settlement platform for transactions.

The bank, which is under the Reserve Bank of India’s (RBI) so-called prompt corrective action (PCA), had reported a net loss of Rs853.01 crore for the three months ended June compared with a profit of Rs241.10 crore a year ago as bad loans ballooned to a record high. The bank’s gross non-performing assets (NPAs) soared to 24.11% in the first quarter, displacing Indian Overseas Bank which had a gross NPA ratio of 23.6%.