RBI: The government has moved one step further on the privatization of IDBI Bank. The Reserve Bank of India (RBI) has submitted its fit and proper report after its investigation. Now the companies bidding to buy IDBI Bank can take further action. After the RBI report comes, the government can now call for financial bids for IDBI Bank in this financial year itself.
Buyers will get access to the bank’s virtual data room
Citing sources familiar with the matter, CNBC TV18 has claimed that the government can now move forward rapidly on the sale of IDBI Bank. The government wants to complete the entire process of selling the bank this year. After the RBI report, now interested buyers will be able to move forward in August. Sources said that all of them will get access to the bank’s virtual data room from the government so that they can make a correct estimate about the bank’s financial condition. Along with this, a decision can also be taken regarding the share purchase agreement.
Government and LIC are the biggest shareholders
The Central Government and Life Insurance Corporation (LIC) are the largest shareholders in this bank. Both of them want to sell about 61 percent stake in IDBI Bank. Out of this, the government will sell 30.48 percent and LIC will sell 30.24 percent stake. The Department of Disinvestment had already sent the names of bidders willing to buy IDBI Bank’s stake to the central bank. Department Secretary Tuhin Kant Pandey had said on the day of Budget 2024 that we are waiting for the fit and proper report of RBI. As soon as it arrives, we will start completing the process of disinvestment of IDBI Bank.
Disinvestment of the bank has been stuck for a long time
The disinvestment of IDBI Bank has been stuck for a long time. There have been many hurdles in it since October 2022. In November last year also, the government had tried to take this process forward. However, it was postponed due to the market not giving a good response. IDBI Bank’s stock closed at Rs 103.65 on Wednesday with a marginal decline of 54 paise.
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