IDBI Bank will offload its entire 19.18% stake in Asset Reconstruction Company (India) Limited (ARCIL).

The proposal was approved by the bank's board on Friday, IDBI Bank said in a regulatory filing on Friday. This will involve the sale of IDBI Bank’s entire holding of 6,23,23,800 shares in ARCIL.

In June, IDBI Bank had invited bids from interested parties for the takeover of its stake in the asset reconstruction company (ARC).

Incorporated in 2002 as a non-banking finance company (NBFC), ARCIL is owned by State Bank of India (SBI), IDBI Bank, ICICI Bank and Punjab National Bank (PNB), besides strategic foreign investors such as Avenue Indian Resurgence Pte Ltd.

Since its inception, ARCIL has resolved over Rs 78,000 crore worth of non-performing assets acquired from domestic banks and financial institutions, as per its website.