IDBI Bank privatization process underway, no decision on stake quantum: DIPAM Secretary
DIPAM Secretary Tuhin Kant Pandey said that the process of privatization of IDBI Bank is in progress.
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said the process of privatization of IDBI Bank is on and the quantum of stake sale will be decided after the promotional work is over.
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said on Friday that IDBI Bank (IDBI Bank) privatization of ,Privatization, The process is on and the stake sale will be done after the promotional work is over. (Stake Sale) quantity will be determined. Pandey Life Insurance Corporation of India (LIC) Regarding the initial public offering of K, during a discussion with the media here, he said that preparations for privatization of IDBI Bank are also going on. At present, the managerial control of IDBI Bank is with LIC. Pandey said the quantum of stake to be sold in IDBI Bank would be known after the publicity is over.
After that the composition of the Expression of Interest (EOI) will be finalised. He said that one thing is clear that its managerial control will be handed over, which is currently with LIC. Once we finalize the structure of the EOI, it will also be decided how much of the equity to be controlled by the manager.
45% stake in the bank with the government
The government may decide to sell its entire stake in IDBI Bank in one go or in installments, but it will depend on the sentiment from the investors. The government holds 45.48 percent stake in this bank, while LIC holds 49.24 percent. The Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of managerial control of IDBI Bank in May 2021 itself.
To make way for this disinvestment, necessary changes have been made in the IDBI Bank Act through the Finance Act 2021. Apart from this, transfer advisors have also been appointed. LIC had acquired 8.27 crore additional shares of IDBI Bank on January 21, 2019. Since then this bank has become a subsidiary of LIC.
Apart from this, let us tell you that IDBI Bank had recently revised the interest rates of fixed deposits below Rs 2 crore. The bank had increased the rates on FDs from 31 days to 10 years. The new rate has come into effect from April 20, 2022. After the change, IDBI Bank will give interest in the range of 2.70 percent to 5.60 percent on FDs of 6 days to 10 years.
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