On Friday, the board asked for interest in the sale of the bank’s shares. According to the information, the center is selling a 30.48 percent stake. LIC will sell 30.24 percent. This is the first attempt to privatize a public sector bank in India.
According to the information, last date and time of Submission of Expression of Interest (EOI) of IDBI Bank is 16th December. All expressions of interest (EOIs) are valid for 180 days and can be extended for another 180 days.
The DIPAM secretary said, “Expression of interest is invited for strategic divestment of certain GoI and LIC stakes in IDBI Bank and transfer of management control.”
The proposed strategic disinvestment includes the sale of 30.48 percent stake in the Government of India and 30.24 percent stake in the Life Insurance Company of India.
IDBI Bank operates as a full-service general bank that serves customers from all segments. On January 21, 2019, LIC completed the acquisition of a 51 percent majority stake, making it the majority owner of IDBI Bank. Accordingly, RBI classified IDBI Bank as a private sector bank for regulatory reasons with effect from 21 January 2019.
Since then, IDBI Bank has shown a turnaround in its operations and is constantly looking for new growth opportunities in its business, especially in the retail segment, to maintain its competitive edge and strengthen its position in the banking world.
LIC holds 49.24 percent (529.41 billion shares) and the Government of India holds 45.48 percent (488.99 million shares) of IDBI Bank as of 31 March 2022.
