Cabinet Committee On Economic Affairs Gives In-Principle Approval For Strategic Disinvestment Of IDBI Bank

The Cabinet Committee on Economic Affairs(CCEA), headed by Prime Minister Narendra Modi, has given its in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank Ltd, a press release said.

The Government of India (GoI) and LIC together own more than 94 per cent of the equity of IDBI Bank (GoI 45.48 per cent, LIC 49.24 per cent). LIC is currently the promoter of IDBI Bank with Management Control, and GoI is the co-promoter.

LIC's Board has passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank Ltd. through divesting its stake along with strategic stake sale envisaged by the Government.

The strategic buyer is expected to infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank Ltd.

Resources through strategic disinvestment of Government equity from the transaction would be used to finance developmental programmes of the Government benefiting the citizens.

Finance Minister Nirmala Sitharaman had announced the privatisation of public sector banks (PSBs) while presenting the Budget 2021-22 as part of a disinvestment drive to garner Rs 1.75 lakh crore.