There are many government banks in the list of administrations, which are going to be privatized. IDBI Bank's name is at the top of this list. The government is going to disinvest it in the next financial year. But during this period IDBI Bank has also presented excellent results. Bank profits are continuously increasing quarter by quarter. IDBI Bank's net profit in the third quarter (IDBI Q3 Result) has increased by 60 percent to Rs 927 crore. The bank has said in the information given to the stock markets on Monday that its profit has increased due to a reduction in financial provision and an increase in interest income. In the same quarter a year ago, the bank earned a net profit of Rs 578 crore.
The bank's net interest income rose 23 percent to Rs 2,925 crore in the October-December 2022 quarter, as against Rs 2,383 crore in the year-ago period. At the same time, the gross non-performing asset (NPA) of the bank has also been registered in the reform. The NPA improved to 13.82 percent in the third quarter. While it was 21.68 percent in the same quarter of the last financial year. Due to improvement in NPA, the bank had to make a financial provision of only Rs 233 crore for bad loans in this quarter, while this amount was Rs 939 crore in the December 2021 quarter. To improve the financial health of the bank, a substantial amount is also being given to the government through disinvestment.
The news says that both government and Life Insurance Corporation (LIC) have a 94.71 percent stake in IDBI Bank. The government invited bids for the expression of interest of IDBI Bank on 7 October 2022. It is reported that letters of interest have been invited from potential investors for the sale of a 60.72 percent stake.
Both domestic and foreign investors have also shown interest in this bank. In the past, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management, told news agency Reuters that both domestic and foreign investors have shown interest in acquiring a majority stake in IDBI Bank. Earlier, the Department of Investment had said that potential buyers must have a minimum net worth of Rs 22,500 crore.
Significantly, Finance Minister Nirmala Sitharaman while presenting the budget in February 2021, apart from IDBI Bank, has also announced the privatization of two more government banks. But due to the Corona crisis, conquest could not be achieved. Now once again the government is busy moving forward on the disinvestment front.
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