IDBI Bank has Rs 11,520 crore as deferred tax assets, and 120 properties in 7 cities

16 Oct 2023 , 08:50 AM

The government has notified IDBI Bank’s prospective asset valuers that the lender has Rs 11,520 crore in deferred tax assets and 120 properties in the top seven cities, including Mumbai, Pune, and Chennai.

In answer to pre-bid enquiries from IDBI Bank prospective asset valuers, the Department of Investment and Public Asset Management (DIPAM) stated that the bank has 68 properties in Mumbai, 20 in Pune, nine in Chennai, and seven in Ahmedabad. It also has six properties in Kolkata, five in Delhi, and five in Hyderabad.

The intangible on IDBI Bank’s balance sheet primarily consists of deferred tax assets worth approximately Rs 11,520 crore, DIPAM added.

Overpayment of tax by an entity is generally referred to as a deferred tax asset. Excess tax paid can be used for future tax liabilities.

DIPAM further stated that the asset valuer will identify and value intangibles that are not on the IDBI Bank balance sheet, such as brand name and branch network.

The Terms of Reference for asset valuers required them to describe and detail all of the properties and assets being appraised, including intangibles such as trademark(s), title to property rights, and so on, as specified by the bank. The valuation of intangibles has to be disclosed individually.

DIPAM informed the asset valuer, after providing data on asset properties in the seven locations, that such assets account for 94% of the total write-down value (after depreciation) of IDBI Bank’s fixed assets.

DIPAM provided the total number of properties owned by the bank in the seven cities. There are 68 in Mumbai, 20 in Pune, nine in Chennai, seven in Ahmedabad, six in Kolkata, and five each in Delhi and Hyderabad.

For feedback and suggestions, write to us at [e-mail]