The Union Cabinet in May gave in-principle approval for the strategic disinvestment of IDBI Bank with the transfer of management control.
The government invited bids from merchant bankers and legal firms to assist in the strategic sale of IDBI Bank. The Union Cabinet in May gave in-principle approval for the strategic disinvestment of IDBI Bank with the transfer of management control. Both the Central Government and Life Insurance Corporation of India (LIC) currently hold more than 94 per cent stake in IDBI Bank.
Presently the management control of the bank is with LIC. LIC holds 49.24 per cent stake in the bank while the government is a 45.48 per cent shareholder. Whereas the non-promoters hold 5.29 per cent shareholding of the bank.
13th July is the last date
Giving this information, the Department of Investment and Public Asset Management (DIPAM) said that the last date for submission of bids for both merchant bankers and legal advisors is July 13. In the strategic sale of IDBI Bank, the merchant bankers will advise and provide assistance to the government on transaction modalities and timing of disinvestment. It will recommend the need for other necessary intermediaries in this disinvestment or sale, as well as assist in the identification and selection of appropriate terms of reference for the transaction.
Request for Proposal issued for Bids (The eligibility conditions of the RFP state that bidding can be done by a company that has engaged in strategic sale, disinvestment, merger and acquisition activities, aggregation of Rs 5,000 crore or more during April 2016 to March 2021, Have worked as an advisor on private equity investment deals.
After the decision of privatization, now IDBI Bank will change like this
IDBI Bank is now moving from Corporate to Retail Banking. Actually people believed that the focus of this bank is more corporate, but according to the figures, now the bank is increasing the focus on retail customers.
If we look at the bank’s figures, the corporate and retail ratio of the bank has been 38: 62 till March 2021. Which used to be 40:60 till three years ago. This means that now the bank is focusing on only 38 percent corporate customers. While 62 percent of the focus is on retail customers. The bank is soon working on taking this ratio further. The bank is working on a plan to increase its retail book by 55 to 60 percent.
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