The Government of India and the Life Insurance Corporation of India (LIC) will together divest 60.72 per cent stake in IDBI Bank. The government on Friday invited the expression of interest for the divestment of stakes in the bank.
“Expression of Interest is invited for Strategic Disinvestment of specified GoI and LIC stakes in IDBI Bank along with transfer of management control,” the Secretary, the Department of Investment and Public Asset Management (DIPAM) said in a tweet.
The proposed strategic disinvestment includes the sale of 30.48 per cent of the Government of India’s stake and 30.24 per cent stake in the Life Insurance Corporation of India.
IDBI Bank operates as a full-service universal bank serving customers from all segments. On January 21, 2019, LIC completed the acquisition of 51 per cent controlling stake making it the majority shareholder of IDBI Bank.
The RBI, consequently, categorized IDBI Bank as a Private Sector Bank for regulatory purposes with effect from January 21, 2019.
Since then, IDBI Bank has showcased a turnaround in operations and is constantly exploring new avenues for growth in its business, especially in the retail segment, to maintain its competitive edge and to strengthen its position in the banking landscape.
LIC holds 49.24 per cent (529.41 crore shares) while the Government of India holds 45.48 per cent (488.99 crore shares) in IDBI Bank as on March 31, 2022.
It has now been decided that pursuant to the strategic disinvestment of IDBI Bank (i) GoI shall sell such number of shares representing 30.48 per cent and Life Insurance Corporation of India shall sell a such number of shares representing 30.24 per cent, aggregating to 60.72 per cent of the equity share capital of IDBI Bank, along with transfer of management control in IDBI Bank, as per documents released by the Department of Investment and Public Asset Management, Ministry of Finance.