Union Govt to Sell Majority Stake in IDBI Bank

State-owned Life Insurance Corporation of India will also be diluting its holding in IDBI Bank as part of the state's divestment process.

Reuters

State-owned Life Insurance Corporation of India will also be diluting its holding in IDBI Bank as part of the state's divestment process.

union govt to sell majority stake in idbi bank

An IDBI Bank outlet. Credit: Wikimedia commons.

Mumbai: The Union government is looking to sell a 60.72% majority stake in IDBI Bank and has invited expressions of interest, it said in a notification on Friday, October 7.

State-owned Life Insurance Corporation of India will also be diluting its holding in IDBI Bank as part of the state's divestment process.

The total 60.72% stake sale comprises a 30.48% stake from the government and a 30.24% stake from LIC.

At the end of June the Indian government held 45.48% of IDBI bank while LIC held 49.24%.

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Banks, foreign lenders, shadow banks, alternate investment funds and offshore funds have been allowed to place bids. However, large industrial and corporate houses and individuals are not eligible to bid.

Bids can be submitted by single entities or as part of a consortium.

In the three months to June 30, IDBI Bank made a net profit of Rs 756 crore, up from Rs 603 crore a year earlier.

(Reuters)

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