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- Bank Privatization News; Narendra Modi Government And LIC Will Sell Their Stake In IDBI Bank
Mumbai32 minutes ago
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- The government holds 45.48% stake.
- LIC currently holds 49.24% stake in IDBI Bank.
- Apart from this, 5.29% stake is held by non-promoters.
The government has extended the deadline for application of transaction advisors to sell stake in IDBI Bank. Now you can apply till 23rd July. Earlier this deadline was till July 13. This information has been given by DIPAM. Government and LIC are going to sell their 100% stake in IDBI Bank. Along with this, there is also a preparation to transfer management control. It has also been completed and it has also been approved by the Cabinet of Economic Affairs. This information has been given by the Department of Investment and Public Asset Management (DIPAM).
Government of India and LIC’s stake in IDBI Bank will be sold. Along with this, management control will also be transferred. According to DIPAM, IDBI Capital Markets will also not be able to bid to become transaction advisors. Further, any person or company holding more than 50 per cent stake or controlling stake in the merchant banker will also not be allowed to bid for IDBI Bank. In addition, DIPAM has barred public sector banks from bidding for IDBI Bank.
Bids were invited last month
DIPAM had last month invited bids for management and advice on the strategic stake sale and transfer of management control in IDBI Bank.
What will be the impact on account holders?
Selling the government and LIC’s stake in the bank will not affect the account holders. Their deposited capital will be safe in the bank as before. They will continue to get interest at the same rate, interest on FD.