IDBI Bank Privatization: RBI to complete vetting process by October and sale by March

- Advertisement -

The Reserve Bank of India (RBI) is expected to fast-track the vetting of potential buyers for IDBI Bank, helping the government sell a majority stake in the bank by October-end.

The government, which owns 45.48% of IDBI Bank, and state-owned Life Insurance Corp of India, which holds 49.24%, plan to sell 60.7% of the lender.

The RBI began the vetting process in April after Kotak Mahindra Bank, Prem Watsa-backed CSB Bank, and Emirates NBD submitted initial bids to acquire a majority stake in IDBI Bank. The RBI typically takes 12-18 months to complete the assessment, but has conveyed to the government that it will complete the vetting of IDBI Bank’s potential buyers by October-end.

- Advertisement -

Completing the vetting process early could allow the government to invite bids in January-March and target a wrap-up of the sale by the end of March.

The IDBI Bank stake sale is part of the government’s 510 billion rupees ($6.13 billion) divestment target for fiscal 2024. However, it is also the only significant divestment the government is focusing on this year, raising concerns about the target being met, as attention turns to the upcoming state and national elections.

Once the RBI screening concludes, the government will grant suitable bidders access to confidential data that IDBI Bank has begun collecting, such as employees’ pension corpus and insurance or medical covers.

- Advertisement -

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Download Budget 2024-25 PDF, Budget important points and Highlights PDF

Download Budget 2024-25 PDF, Budget important points and Highlights PDF

Govt launches internship scheme for youth, Rs.5000 will be given monthly to Youth

Govt launches internship scheme for youth, Rs.5000 will be given monthly to Youth

Good news for Employees! Govt announced to review NPS and make changes in pension scheme

Good news for Employees! Govt announced to review NPS and make changes in pension scheme

Budget 2024: PSU banks will develop in-house capabilities for credit assessment of MSMEs

PSU banks will develop in-house capabilities for credit assessment of MSMEs

Budget 2024: Mudra Loan Limit increased to Rs.20 Lakh

Budget 2024: Mudra Loan Limit increased to Rs.20 Lakh

Income Tax Rate changed, Check new Income Tax Slab in 2024

Income Tax Rate changes, Check new Income Tax Slab

Rs.25 crore Fraud in SBI: CBI Books Private Firm and Directors for Cheating SBI of Rs 25.62 Crore

Rs.25 crore Fraud in SBI: CBI Books Private Firm and Directors for Cheating SBI of Rs 25.62 Crore

Latest News