Mumbai: Public sector lender Bank of Baroda (BoB) has invited fresh bids to sell the head office of erstwhile Dena Bank in the city’s Bandra Kurla Complex after its negotiations with Life Insurance Corporation of India (LIC) and ICICI Bank , the two contenders for the property, failed to fructify, according to two people aware of the development.

This is the second time BoB has invited expressions of interest (EoI) to sell the property.

The last date for submitting fresh bids has been set for 6 January, 2020.

Following its merger with Dena Bank and Vijaya Bank in April this year, BoB has been wanting to sell away the office.

In its document seeking bids, BoB said it has invited offers from interested eligible parties as it intends to divest the commercial property.

In an earlier e-auction which was scheduled for 18 October, BoB had set a reserve price of ₹530 crore for the property. The land area of the office is 2878.36 square meters and the built-up area for the property stands at 9953.73 square meters.

"Both LIC and ICICI Bank had participated in the earlier bid. However, talks with each of the entities failed due to a mismatch in the price expectation of the property," said one of the people mentioned above.

LIC and ICICI Bank have not responded to emails, seeking confirmation on the development till the time the story was published.

The reserve price for the property is too high and hence it would be difficult to negotiate a deal, said another person who did not want to be identified.

"In the earlier bid, the base price was kept at ₹530 crore, which comes to around to ₹50,259 per sq. ft. on built -up- area basis. It should ideally get price between ₹30,000-32,000 per sq ft," the person said.

In September last year, the government decided to merge three banks—Bank of Baroda, Dena Bank and Vijaya Bank, to reduce the amount of capital it needs to pump into these lenders and help clean their balance sheets. The merger was effective 1 April.

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