In an effort to get better valuation for IDBI BankBSE -0.06 % strategic stake sale, the government may transfer the bank's bad loans to a special entity. The government is looking to reduce its stake in the bank to below 50% to transform it into another Axis Bank. It currently holds 76.5% in it and is exploring all options, including strategic sales, to effectively privatize the bank. "Some suggestions have been made and they are being discussed. This looks like a plausible option given that such a move will enhance the chances of getting more investors for the proposed IDBI disinvestment," said a government official aware of the deliberations.