IDBI Bank might soon move towards privatisation. Reserve Bank of India announces 60% stake selling for privatisation. The bank currently has LIC and the government as major stakeholders. Thus, LIC has a 49% stake where it will be selling 30.2%. Apart from that, the government has a 45.5% stake where it will be selling a 30.5% stake. Following are more details about the IDBI Bank’s privatisation below.
Is IDBI Bank Going For Privatisation?
IDBI Bank is moving towards privatisation. The bank has a market capitalisation of Rs. 95,000 Crores. Thus, both the government and LIC will sell the shares. LIC will be selling 30.2% of its stake in IDBI Bank. While the government will be selling 30.5% of the stake. The privatisation might take place soon. The government will be securing Rs. 29,000 crores from the transaction. There can be several amendments in the banking reforms. Thus, the Banking Regulation Act of 1949 might have some changes.
It will help in facilitating the banking sector reforms. The announcement can be made in Budget 2024. It will be resented on 23 July 2024. The privatisation will reduce the government’s ownership in public sector banks. The reduction can be below 51%. IDBI Bank is going for privatisation. Thus, 60% of the bank’s share will be sealed. The bank’s share price is currently Rs. 92.20 per share. It had a rise of 4.92% today.
The weekly increase was 6.83%. While the monthly increase was 6.89%. IDBI Bank is moving towards privatisation. The government had a major chunk of its share with it. Thus, it will now reduce the government’s share by many times. Reserve Bank of India shares the report recently mentioning all the details about the IDBI Bank’s bidders and privatisation steps. It was much awaited. The purpose of the report is to show whether all the bidders are complying with the standards or not.
Thus, the report shows that all the bidders are matching the criteria. However, one does not match and does not provide the necessary information. Thus, the LIC became the largest stakeholder in the bank. Everyone is curious to know more about the budget 2024 announcements. There are only a few days left for the budget announcement. Thus, in conclusion, IDBI Bank is moving towards privatisation. RBI released the report stating all the bidders of the bank. The budget for 2024 will clear all the queries that the investors might be having. The RBI report is a ‘fit and proper’ report. The company has LIC as the biggest stakeholder with a 49% stake. The company has the government as the second biggest stakeholder with a 45.5% stake.