Curated By: Business Desk
Last Updated: September 05, 2023, 19:46 IST
The government is planning to sell approximately 61% of its stake in IDBI Bank in collaboration with Life Insurance Corporation of India (LIC).
Interested asset valuers for strategic divestment in IDBI Bank can submit bids until October 9.
The Central government has initiated the process to appoint an asset valuer for the strategic divestment in IDBI Bank. The asset valuer will be appointed to determine the fair value of the assets and liabilities of IDBI Bank.
On Monday, September 4, the Department of Investment and Public Asset Management (DIPAM), on behalf of the government and LIC, issued a Request for Proposal (RFP) to appoint an asset valuer.
According to a CNBC-TV18 report, the asset valuer will be tasked with conducting a comprehensive valuation, including assessing the fair value of the bank’s investments, loans, and advances. The valuer will provide a comprehensive report on the bank’s financial portfolio.
Interested asset valuers for strategic divestment in IDBI Bank can submit bids until October 9, according to the report.
The government is planning to sell approximately 61% of its stake in IDBI Bank in collaboration with Life Insurance Corporation of India (LIC). The government has already received Expressions of Interest (EOIs) for this. The government and the Reserve Bank of India are currently evaluating the bids. Bidders will need necessary approvals from the government and RBI to proceed to the second phase of the bidding process.
The government plans to carry out the financial bidding for IDBI Bank by December and complete the sale of its stake in IDBI Bank by the fourth quarter of the current fiscal year (by March 2024).
The process for privatisation of IDBI Bank started in July. The appointment of the asset valuer is a further step in this direction.
The government currently holds a 45.48% stake in IDBI Bank. The government is likely to sell 30.48% of its stake in the bank. Moreover, the LIC will sell 30.24% per cent of its total 49.24% shareholding. After the strategic divestment of IDBI Bank, the government and LIC will hold 15% percent and 19% stakes, respectively, resulting in their total ownership of 34 per cent in the bank. IDBI Bank’s liabilities include deposits, loans, and other debts, along with provisions.
