Ahead of the formation of National Asset Reconstruction Company Ltd (NARCL), IDBI Bank has invited bids to shed its 19% stake in Avenue Capital-backed Asset Reconstruction Company (India) Ltd (Arcil).

IDBI Bank has invited bids from interested parties and the last date for submission of expressions of interest (EoI) is 25 June.

Earlier, Punjab National Bank (PNB) invited bidders to buy its 10.01% stake in Arcil.

"IDBI Bank intends to sell 6,23,23,800 equity shares, constituting approximately 19.18% of the total equity share capital of Arcil held by IDBI Bank," it said in a notice.

IDBI Bank, which is controlled by Life Insurance Corporation of India (LIC), said it reserves the right to withdraw from the process and to accept or reject any or all offers at any stage of the process without assigning any reasons thereof.

Arcil, which was incorporated in 2002, is owned by banks like State Bank of India (19.95%), IDBI Bank, ICICI (15.52%) and PNB. In November 2018, New York-based distressed investor Avenue Capital acquired around 27% stake in the ARC.

Since its inception, Arcil has resolved over Rs 78,000 crore worth of non-performing assets (NPAs) acquired from Indian banks and financial institutions. It has assets under management (AUM) of around Rs 12,000 crore.