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Finance ministry likely to invite financial bids for IDBI Bank
July 12, 2023
The financial bids of Industrial Development Bank of India (IDBI) are likely to be invited by December as the clearance from the RBI is awaited for the strategic sale from which the government aims to get approximately ₹16,000 crore in this financial year, a senior government official said.
“From the IDBI strategic sale, the government will get a good amount of ₹15,000-16,000 crore. The strategic sale should move this year. Government is targeting financial bids by December and close the deal in the fourth quarter,” the official told Moneycontrol.
The government and LIC combined are selling 60.72 per cent stake in IDBI Bank.
The Department of Investment and Public Asset Management (DIPAM) is awaiting clearance from the Reserve Bank of India (RBI) since it concerns strategic sale of a bank.
“It has been sent to RBI, discussions with them have been held, clearance is expected soon. The strategic sale of IDBI Bank is a low hanging fruit because technically it’s already privatised,” he said.
IDBI Bank Limited has been categorised as a ‘private sector bank’ for regulatory purposes by RBI with effect from January 21, 2019.
After RBI clearance, due diligence by the bidders will be done for which a minimum of 42 days is given, he said. “There is keen interest of investors in IDBI Bank,” the official added.
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