SBI, Axis Bank, ICICI Bank, others buy stakes in Fintech firm IBBIC

Six banks State Bank of India, Axis Bank, Indian Bank, Yes Bank, IDBI Bank, and ICICI Bank on 27th July 2021, said they have bought equity stakes in financial technology platform IBBIC. SBI, Axis Bank, Indian Bank, Yes Bank, and IDBI Bank picked up a 5.55 percent stake each, representing 50,000 shares in IBBIC, for cash at Rs 5 lakh each.

In their separate regulatory filings on 27th July 2021, these lenders said they have subscribed to 50,000 equity shares of a face value of Rs 10 each fully paid up of IBBIC Private Ltd for a consideration of Rs 10 per equity share constituting 5.55 percent of the issued and paid-up capital of IBBIC. The equity is acquired for a cash consideration of Rs 5 lakh by each of them.

Apart from these lenders, ICICI Bank bought 49,000 shares (5.44 percent) for Rs 4.9 lakh.

Incorporated in May 2021, the IBBIC platform offers distributed ledger technology (DLT) solutions to the Indian financial services sector. The equity ownership of IBBIC is aimed at providing DLT solutions for the financial services sector.

DLT, more commonly known as blockchain technology, is a protocol to enable the secure functioning of a decentralized digital database. It stores information securely using cryptography.

Source: Business Standard