New Delhi: The government is weighing various options, including qualified institutional placement (QIP), to bring down its stake in IDBI Bank. The government currently holds an 80.96 per cent stake in the Mumbai-based bank. “Three-four options are being looked at, including private placement of shares to institutional investors through QIP route,” a finance ministry official said. The proposal for the issue of equity capital through various alternative modes, including QIP, is listed as one of the agenda for the annual general meeting of the bank to be held in August.
A decision in this regard will be taken in the next few months, the official said, adding the government has already started the transformation process of the bank like re-balancing of its assets along with shedding of stake in the non-core business.
In addition, the bank is getting adequate capital support to strengthen its financial health, the official said.