Government invites bids to privatise IDBI BankIDBI - 67 Change: 0.80 (1.21 %)
The government invited bids for privatising IDBI Bank and together with LIC will sell a total of 60.72% stake. Maximum four members would be allowed in a consortium and should have a minimum net worth of Rs 22,500 crore and must report net profit in three out of the past five years. The successful bidder would be required to mandatorily lock-in at least 40% of the equity capital for five years from the date of acquisition. The selection of the qualified interested parties and the amount of equity stake such entities would hold in IDBI Bank would be decided by the Reserve Bank while the bidder would have to clear the 'fit and proper' assessment done by the RBI.
The deal will help the government in disinvestment while entry of a focused stakeholder is expected to bring further improvement in growth and profitability of the bank.