IDBI to remain ‘private bank’

IDBI Bank will continue to operate as an ‘Indian private sector bank’ after its strategic sale and the government’s residual 15 per cent stake in the lender post privatisation will be considered as ‘public shareholding’, the finance ministry said. An ‘appropriate dispensation’ for the new owner to achieve minimum public shareholding (MPS) over an extended period is under consideration and the winning bidder will have no restriction on undertaking corporate restructuring of the subsidiaries of IDBI Bank, it added.

These clarifications are part of the responses by the Department of Investment and Public Asset Management (DIPAM), under the finance ministry, to potential investors’ pre-EoI queries.

The government had on October 7 invited bids for privatising IDBI Bank and said that it together with LIC will sell a total of 60.72 per cent stake in the financial institution.