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.
Key takeaways
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.
