Government decided to sell banks, big public sector banks will become private, Rs. 29000 crore expected to be received

IDBI Bank Disinvestments: The process of privatization of IDBI Bank is likely to be completed soon. The Reserve Bank of India has issued a fit and proper report confirming the investors bidding for the bank. The Narendra Modi government started the process of selling the stake of this bank in May 2021.

As soon as the central government got permission from RBI for privatization of the bank, its process has started rapidly. RBI has assessed whether the bidders are able to meet the appropriate and prescribed criteria or not. This will be investigated, as well as it will be checked whether the bidders are following the rules or not. No action is being taken against it by any regulator, approval will be given after investigation.

It is expected to be announced in the budget

After receiving the fit and proper report from the RBI, all eyes are on the budget to be presented by Finance Minister Nirmala Sitharaman on July 23. In which she can give a hint on disinvestment. Today, IDBI Bank shares rose by 6 per cent after the RBI gave the green signal to the bidders. At 12.07 am, it was trading at 92.47, up 5.18 per cent. According to media reports, all foreign bidders except one have submitted their reports. While the foreign bidder did not release any information about itself, the foreign regulator also did not provide any data about it.

45.5 percent stake with the government

The government has a 45.5 percent stake in IDBI Bank. LIC has more than 49 percent stake. IDBI was earlier a financial institution, which later became a bank. According to the government's disinvestment plan, the government can sell 60.7 percent stake in the bank. This includes 30.5 percent stake of the government and 30.2 percent stake of LIC.

Government expects to get Rs. 29000 crore

The market cap of IDBI Bank is currently Rs. 99.78 thousand crores. As per the current valuation, after selling the stake, the government can get more than Rs. 29 thousand crores. The government had planned to disinvest BPCL, Concor, BEML, Shipping Corporation, IDBI Bank and an insurance company. But no work has been done in this regard for the last 18 months. Disinvestment of BPCL has been stopped for now.