The strategic disinvestment and transfer of management control of IDBI Bank received preliminary clearance from the Cabinet Committee on Economic Affairs in May 2021.
Digital Desk: According to an official, negotiations with the RBI are nearing their conclusion, and the government is likely to release a request for preliminary bids for the sale of a stake in IDBI Bank next month.
"The Reserve Bank of India and the Securities and Exchange Board of India still need to be contacted about a few outstanding matters. By September, we intend to provide the EoI "Official statement to PTI.
The official, however, withheld specifics on the regulatory matters that the government is discussing with the regulators of the banking and equity markets, RBI and Sebi, respectively.
"We expect that once the Expression of Interest (EoI) is floated, there will be a lot of investor inquiries because IDBI Bank would be the first of its kind in terms of privatisation in the banking sector. This fiscal year, the stake sale is unlikely to be completed," the representative noted.
The strategic disinvestment and transfer of management control of IDBI Bank received preliminary clearance from the Cabinet Committee on Economic Affairs in May 2021.
Currently, Life Insurance Corp. of India, the bank's promoter, owns a 49.24 percent holding in addition to the government's 45.48 percent ownership stake.
"Strategic sales are new ground. There are numerous concerns that must be resolved, such as the open offer that must be made to the new buyer, the way in which the consortium will be formed, and others "added the official.
Before seeking initial bids, the government and LIC will decide on the exact amount of IDBI Bank share they will sell, the official said, adding that it will be specified in the EoI.
In 2022–23 (April–March), the government set a target of Rs 65,000 crore from divestment, of which it has already raised Rs 24,544 crore.
Leave A Comment