Government Preparing To Sell Its Stake In IDBI Bank
Government preparing to sell its stake in IDBI Bank, and LIC will also sell shares.
The government and LIC are considering selling their stake in IDBI Bank. It is being discussed between the officials of both that how much stake has to be sold.
Moneycontrol has given this information by citing a source. Explain that the government and LIC have a total stake of 94 percent in IDBI.
According to reports, the government is considering selling a total of 51 percent stake in IDBI Bank. However, no official statement has come on this yet.
The final decision on this share sale will be taken by the Group of Ministers. It is believed that by the end of September, the government can decide about its buyers.
How much is the difference between the two?
The government holds 45.48 percent of IDBI Bank while LIC holds 49.24 percent. According to reports, some stakes in IDBI will be sold by the government, and some stakes in LIC.
Along with this, the responsibility of management will also be handed over to the buyer. RBI can approve the purchase of more than 40 percent stake.
RBI Governor Shaktikanta Das has recently said that RBI’s stand on the privatization of public sector banks is neutral.
Government preparing to sell its stake in IDBI Bank: Gradual privatization of banks will boost financial inclusion.
The August issue of the recently published RBI Bulletin read, “Government’s gradual move towards privatization can ensure that the social objective of financial inclusion (connecting more and more people to financial services) can be ensured.”
However, it was also said in the bulletin that if banks are handed over to private hands too fast, it will cause harm instead of benefit.
IDBI shares rose.
After the news of the stake sale in IDBI Bank, its shares are seeing a jump.
Till the time of writing the news, the share of IDBI Bank is trading at Rs 40.25 with a jump of 3.21 percent. This stock also touched a price of Rs 41 in intra-day trade on Wednesday.
