The Central government and Life Insurance Corporation of India (LIC) will together divest 60.72 percent stake in IDBI Bank. For this, the government on Friday invited the expression of interest (EOI) for the divestment of stakes in the bank.
"Expression of Interest is invited for Strategic Disinvestment of specified GoI and LIC stakes in IDBI Bank along with transfer of management control," Secretary, Department of Investment and Public Asset Management, said in a tweet.
The proposed strategic disinvestment includes sale of 30.48 percent of the Government of India's stake and 30.24 percent stake of LIC. IDBI Bank operates as a full service universal bank serving customers from all the segments.
On January 21, 2019, LIC fulfilled acquisition of 51 percent controlling stake making it the majority shareholder of IDBI Bank. The RBI, accordingly, categorized IDBI Bank as a Private Sector Bank for regulatory purposes with effect from January 21, 2019.
Since then, the IDBI Bank has showcased turnaround in operations and is constantly exploring new avenues for growth in its business, especially in the retail segment, to maintain its competitive edge and to strengthen its position in the banking landscape. LIC holds 49.24 percent (529.41 crore shares) while the Government of India holds 45.48 percent (488.99 crore shares) in IDBI Bank as on March 31, 2022.
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