Network 18 Exclusive: Now the government can invite applications by April to sell its stake in this bank

Network 18 Exclusive: Now the government can invite applications by April to sell its stake in this bank

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new Delhi . Due to LIC IPO, now the disinvestment plan of IDBI Bank is catching up. The government is working fast on selling stake in IDBI Bank. According to a report by CNBC-TV18, the government may invite applications (expressions of interest) to sell its stake in IDBI Bank by April this year. The Reserve Bank has already investigated the process of selling stake in IDBI Bank. Now the work of selling stake in IDBI Bank can be completed in the next 9 months.

According to the report, the government and the country’s largest insurance company LIC (Life Insurance Corporation) are about to sell their entire stake in IDBI Bank. According to the Reserve Bank’s rules, the promoter’s stake in any bank cannot exceed 26%.

hope for a good quote
A government official with knowledge of the matter told CNBC TV18, “There is no pressure to sell stake in IDBI Bank because of promoter holding in the private bank. We are confident that we will get a great response for IDBI Bank.”

Also read- LIC IPO: 15 major questions related to the country’s largest IPO will be answered, every doubt will be resolved

LIC’s 49.24% stake
At present, the government holds 45.58% stake in IDBI Bank and 49.24% of LIC. LIC is the promoter of the bank and the managing control is with it. From 21 January 2019, IDBI Bank became a subsidiary of the insurance company LIC. Then LIC had bought 827,590,885 equity shares of the bank. After this acquisition, LIC’s stake in the bank increased to 51%.

LIC IPO in March
However, in December 2020, IDBI Bank issued additional equity shares through a qualified institutional placement, reducing LIC’s stake in the bank to 49.24%. After this LIC was reclassified as an associate company.

LIC is going to be listed in March this year. In its application, the company has written that its investment in an associate company may have a negative impact on the financial position of the company. IDBI Bank shares were trading at Rs 46.85, down 0.95% at 11.30 am. While the Sensex is trading down 21 points at 57,811.

Tags: bank, Bank news, Disinvestment, IDBI Bank, RBI

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