IDBI Bank Privatization: The Central Government has started the process of selling its stake in IDBI Bank. Bids for this can be made till October 9. Let’s know about it in detail.
The government is considering appointing an asset valuer to evaluate the assets of IDBI Bank and help in strategic disinvestment. The government is selling about 61 percent stake in IDBI Bank in collaboration with LIC and has received several expressions of interest (EOI) for this.
The government and the Reserve Bank are currently examining the bids. Bidders will have to obtain necessary approvals from the government and RBI to proceed to the second phase of the bidding process.
The Department of Investment and Public Asset Management (DIPAM), on behalf of the government and LIC, on Monday issued an RFP (request for proposal) to appoint a reputed asset valuer entity registered with the Insolvency and Bankruptcy Board of India (IBBI). DIPAM has said in a public notice issued in this regard that DIPAM is representing the government in this matter.
Bidding can be done till October 9
In the report, quoting the government document, this information has been shared that the valuer selected by the government will be responsible for valuing the property of the bank and providing necessary help during the sale process.
It has been said that the window for this work will remain open till 9 October 2023. This step of the government is being considered as the beginning of the process of selling the bank.
The government plans to issue financial bids for IDBI Bank by December and sell its stake in IDBI Bank by the fourth quarter of the current financial year i.e. by March 2024. For this, the process had also started in July. Now the process of appointment of asset valuer has been taken forward.
What is the share of government and LIC
Explain that the Government of India’s stake in IDBI Bank is 45.48 percent and it is considering selling its 30.48 percent stake. Also, Life Insurance Corporation of India will sell 30.24 percent of its 49.24 percent stake.
After the strategic disinvestment of IDBI Bank, the government and LIC will hold 15% and 19% stake respectively in the bank, taking their total stake to 34%. IDBI Bank’s liabilities include deposits, loans and other liabilities and provisions.
