IDBI Bank, The central government has abolished the auction process of
appointing a valuer for sale of shares.
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| IDBI Bank |
IDBI Bank disinvestment latest News
The central
government
and LIC own 95 percent of the shares of IDBI Bank, which is headquartered
in Mumbai.
In this case, LIC holds 30.48 percent shares of the government. It has
also been decided to sell 30.24 percent shares.
IDBI Bank is a development finance institution under the ownership of
Life Insurance Corporation of India and Government of India. It offers a
wide range of products and services, such as savings and current
accounts, loans, mobile banking, bill payment, etc.
The central government has decided to sell its 45.48% stake in IDBI Bank
to a strategic partner, along with the transfer of management control.
For this purpose, the government had issued a request for proposal (RFP)
for engagement of an asset valuer on September 01, 2023. However, on
November 20, 2023, the government issued a corrigendum IV, stating that
the auction process for selecting the asset valuer has been abolished
and the valuer will be appointed through direct negotiation.
The reason for this change is not clear, but some sources suggest that
it is due to the lack of response from the eligible bidders. The
government has also extended the last date for submission of bids for
the asset valuer to November 30, 2023.
The strategic disinvestment of IDBI Bank is expected to fetch around Rs
40,000 crore to the government and help it meet its fiscal deficit
target. It is also seen as a move to improve the efficiency and
governance of the bank, which has been under the Reserve Bank of India's
prompt corrective action framework since 2017..