Strategic disinvestment of IDBI BANK Ltd approved
Part of: GS Prelims and GS-III – Economy
- The Cabinet Committee on Economic Affairs has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd.
- The extent of respective shareholding to be divested by GoI and LIC shall be decided in consultation with RBI.
- Government of India (GoI) and LIC together own more than 94% of equity of IDBI Bank (GoI – 45.48%, LIC – 49.24%).
- LIC is currently the promoter of IDBI Bank with Management Control and GoI is the co-promoter.
- It is expected that strategic buyer will infuse funds, new technology and best management practices for optimal development of IDBI Bank Ltd. and shall generate more business
- Resources through strategic disinvestment of Govt. equity from the transaction would be used to finance developmental programmes of the Government benefiting the citizens.