IDBI Bank privatisation now hinges on RBI approval report
28 Jul 2024
The union home ministry has given necessary security clearance to potential investors in IDBI Bank and the Reserve Bank of India (RBI) is expected to grant approval for privatisation of the bank, which is majority owned by the government and Life Insurance Corporation of India (LIC), says a report in The Economic Times.
Government and the LIC will be selling a combined 61 per cent stake in IDBI Bank - government offloading 30.48 per cent equity stake and LIC selling 30.24 per cent stake in the bank.
The government and LIC together hold 94.72 per cent stake in IDBI Bank, which will be reduced to 34 per cent after the strategic sale.
The Department of Investment and Public Asset Management had, in January 2023, received expressions of interest from various entities for purchasing stake in IDBI Bank.
The delay in the privatisation of IDBI Bank was due mainly to non-availability of approval from the RBI and the home ministry, the report points out.
It is incumbent on the bidders to obtain necessary approvals from the home ministry and the RBI before potential investors can scrutinise the accounts of IDBI Bank.