IDBI Bank strategic divestment gets Cabinet approval

The Cabinet Committee on Economic Affairs has recently approved the strategic divestment of IDBI Bank Ltd., along with a transfer of management control, in line with the announcement made in the Union Budget in February.

The government owns 45.48% in IDBI Bank, while LIC holds 49.24%. LIC is currently the promoter of IDBI Bank while the government is co-promoter.

The government stated, “The extent of respective shareholding to be divested by Government of India and Life Insurance Corporation shall be decided at the time of structuring of transaction in consultation with RBI.”