New Delhi: The process of privatization of public sector IDBI Bank is being expedited. To sell its stake in the bank, the central government is preparing to organize a road-show for investors soon. Minister of State for Finance Bhagwat Kishanrao Karad gave this information in reply to a question in Lok Sabha on Monday. The government plans to privatize IDBI Bank through strategic investments. He assured the House that the interests of the employees and shareholders of the bank would be fully taken care of.
Karad said that the government will do strategic disinvestment in IDBI Bank. On May 5 last year, the Cabinet Committee on Economic Affairs had approved the privatization of the bank and change of management controls. The government has 45.48 percent stake in IDBI Bank and 49.24 percent stake in state-owned life insurance company LIC. Information about how much share will be sold by the Central Government and LIC has not been given yet. Last month, LIC had definitely said that it would keep some of its stake in the bank so that it could take advantage of selling insurance schemes through the bank. The government is also going to sell its 5 percent stake in LIC through IPO. For this, Life Insurance Corporation of India (LIC) has again submitted DRHP with market regulator SEBI on Monday.
Also read- LIC IPO: Government submitted updated DRHP, net profit of ₹ 235 crore to LIC in December quarter
Privatization will improve the situation – Karad
Minister of State for Finance Bhagwat Karad said that a road-show would be organized after the submission of Expression of Interest from the potential investors. He said that the investor of this bank would be expected to do capital infusion in the bank. Apart from this, the technology should be advanced and its management should be better so that it runs the work of the bank well. With this the future of the bank will be bright and its condition will improve.
Tags: bank, Bank Privatization, banking reforms, banking sector reforms, IDBI Bank
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