<article>Public sector lender<a href="https://www.dealstreetasia.com/?s=Bank+of+India"> Bank of India (BoI) </a>on Monday initiated the process of selling its stake in <a href="https://www.dealstreetasia.com/?s=STCI+Finance+Ltd">STCI Finance Ltd</a>, a non-banking finance company that is majority-owned by government institutions.</article>

Public sector lender<a href="https://www.dealstreetasia.com/?s=Bank+of+India"> Bank of India (BoI) </a>on Monday initiated the process of selling its stake in <a href="https://www.dealstreetasia.com/?s=STCI+Finance+Ltd">STCI Finance Ltd</a>, a non-banking finance company that is majority-owned by government institutions.
In a stock exchange filing, BoI said it has floated a request for proposal (RFP) for its 29.96% stake.
According to the RFP, the bank is looking at a partial or complete sale of its 1.13 crore shares at a minimum price of Rs550 per share, which will fetch the bank Rs626 crore. Interested buyers must submit bids by 22 August.
STCI Finance provides loans against shares, corporate loans against properties, construction finance and corporate loans. According to information on STCI Finance’s website, BoI is its single largest shareholder.
It has two wholly owned subsidiaries—STCI Primary Dealer Ltd and STCI Commodities Ltd. STCI Primary Dealer subsidiary deals in trade of government securities, corporate bonds, money market instruments, interest rate swaps and equity. STCI Commodities provides brokerage, investment and advisory services in the Indian commodities markets.
STCI Finance also holds 10% equity stake in Clearing Corp. of India Ltd.
Bank of India’s plans to sell its stake in STCI is part of its strategy to sell stakes in subsidiaries and non-core assets to raise capital, amid mounting bad debt issues in the Indian banking system.
In an interview to Press Trust of India in June, the lender’s executive director N. Damodaran said the bank is looking at divesting stake in non-core businesses with an eye on becoming profitable again by the end of the current fiscal. 
“We sold stake in some of the subsidiaries and we are exploring opportunities to divest stake in some other non-core subsidiaries depending on the right valuation. We are focusing on certain non-core subsidiaries to divest with an aim to unlock capital&#8230; it will also help the bank get into the black this fiscal,” he said.
For the fiscal ended 31 March 2017, the bank reported a net loss of Rs1,558 crore as against a net loss of Rs6,089 crore the previous year.
Earlier in March, BoI along with another public sector lender Union Bank of India sold their entire stake in credit information company TransUnion CIBIL to TransUnion International Inc. for Rs381.24 crore. Both banks held a 5% stake each.
In 2016, BoI sold its 18% stake in insurance joint venture Star Union Dai-ichi Life Insurance Company Ltd (SUD) to its Japanese partner for around Rs540 crore.
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Bank of India’s plans to sell its stake in STCI is part of its strategy to sell stakes in subsidiaries and non-core assets to raise capital

Bank of India aims to raise up to $100m via STCI Finance stake sale

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Bank of India aims to raise up to $100m via STCI Finance stake sale

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