The government of India is considering selling at least 51 percent of state-backed IDBI Bank. It is said that the government is likely to keep some IDBI Bank shares after the sale.
The Centre, along with the Life Insurance Corporation of India (LIC), together own about 94 percent of IDBI Bank’s shares. While the government owns 45.48 percent in the bank, LIC owns another 49.24 percent stake in IDBI.
In the process, the RBI will allow investors to buy a stake larger than 40 percent, as entities seek permission from the central bank to purchase stakes above that threshold, while non-regulated firms are capped at purchases of 10-15 percent.
A panel of ministers will make the final decision on the structure of the deal. The government and LIC will formally seek to gauge buyer interest as soon as the end of September. Shares in IDBI Bank have risen 6.3% in the past 12 months, giving the lender a market value of about $5.3 billion.
