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At present, the government holds 45.48 per cent stake in the bank and Life Insurance Corporation holds 49.24 per cent
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DIPAM secretary Tuhin Kant Pandey said that the department is working on the Expression of Interest (EOI). Soon IDBI Bank will invite bids from investors for privatisation. The Cabinet Committee on Economic Affairs in May 2021 had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank.
At present, the government holds 45.48 per cent stake in the bank and Life Insurance Corporation (LIC) holds 49.24 per cent. LIC is also presently the promoter of the bank.
Tuhin Kant Pandey said in FICCI Capum-2022 19th Annual Capital Markets Conference, 'We have been working on this for a long time. This is also the first transaction of its kind where we will privatise a bank through bidding. Both the government and LIC hold 94 per cent stake in IDBI Bank.'
DIPAM Secretary said that the bank has come out of Prompt Corrective Action (PCA) framework after nearly four years after improving financial performance. Significantly, in March 2021, the RBI removed IDBI Bank from the prompt corrective action framework after nearly four years on its better financial performance. Secretary, Department of Investment and Public Asset Management (DIPAM) said, “We are working on the EOI and it will be issued soon.”
Significantly, the government has set a target of raising Rs 65,000 crore from disinvestment in 2022-23 (April-March). The government has already raised Rs 24,544 crore, of which most of the contribution has been raised by listing the country's largest insurance company LIC in May this year.