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IDBI Bank strategic divestment plan approved

May 06, 2021

IDBI Bank strategic divestment plan approved

Union Cabinet on Wednesday gave approval for the strategic divestment and move of the executives control in IDBI Bank. “The Cabinet Committee on Economic Affairs, led by Prime Minister Shri Narendra Modi, has given it’s on a basic level approval for vital disinvestment alongside transfer of the management control in IDBI Bank Ltd,” the Center said in a statement.

“The degree of separate shareholding to be divested by GoI and LIC will be chosen at the hour of structuring of transaction in discussion with RBI,” it further added.

The government at present claims a 45.48% stake in IDBI Bank while Life Insurance Corporation (LIC) owned 49.24% controlling stake in the moneylender. In 2019, the state-owned life insurer infused ₹21,624 crore into the bank. LIC is as of now the promoter of IDBI Bank with Management Control and the government is the co-promoter.

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