Bank Privatisation: The process of privatization of this bank will be accelerated. Banking sector regulator Reserve Bank of India can accelerate the investigation of potential buyers of IDBI Bank and complete it by October 2023 so that the process of selling stake in IDBI Bank can be completed.
According to Reuters, the central government and LIC, which holds stake in IDBI Bank, want to sell their stake. The Central Government has 45.48 percent stake in the bank and LIC has 49.24 percent stake. RBI had started the process of screening potential buyers in April 2023 after Kotak Mahindra Bank, CSB Bank and Emirates NBD submitted preliminary bids to buy majority stake in IDBI Bank. Before handing over any entity to run the bank’s operations, RBI takes 12 to 18 months to assess the buyer.
RBI told the government that the investigation of potential buyers will be completed by the end of this month. After completion of the investigation process, the government will invite bids during January-February to buy stake in IDBI Bank and the path for privatization of the bank will again be cleared by March 2024. The government has set a target of achieving Rs 51000 crore through disinvestment of IDBI Bank.
After the completion of the RBI investigation, the government will share with the bidder the confidential data that the bank has started collecting. Which includes Employees Pension Corpus, Medical and Insurance cover. After this news came out, there has been a rise in the stock of IDBI Bank. Today the bank’s stock closed at Rs 70.95 with a rise of 2.53 percent.
