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The IDBI Bank stock jumped on Monday on reports that International Finance Corporation (IFC) would pick up 15 per cent stake in the bank.
The stock closed at ₹93.45 apiece, up 8.16 per cent, on the BSE.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.
Earlier, there were reports that the government may divest a part of its stake in the public sector bank to various State-owned entities, including LIC and retail investors.
As at September-end, the government had 76.50 per cent stake in the bank and its stake cannot fall below 51 per cent. The bank, in reply to a query from the BSE regarding the news report, said “We confirm that no such events/ negotiations in respect of the published news have taken place in the bank and the bank is not aware of any such information that has been published in the newspapers.”
Earlier this month, Kishor Kharat, MD and CEO, said: “Let me tell you and you can put it on record that there is no official communication or anything from the government to us whether it is a divestment or whether they want to reduce stake. There is no communication.
“If they ask, we will certainly communicate (provide feedback).” Kharat emphasised that business strategy and ownership are different. “There may be changes in the ownership, we don’t know. But irrespective of that, we have our own strategy for business growth and that will continue as it is,” he said.
Staff protest IDBI Bank employees under the aegis of the United Forum of IDBI Officers and Employees had struck work on November 27 to protest the move to privatise the bank by diluting its stake to below 51 per cent Finance Minister Arun Jaitley reportedly told a TV channel in Singapore in September that the government could examine an Axis Bank-like shareholding structure for IDBI Bank.
In Axis Bank, various instrumentalities of the government, such as LIC, Administrator of the Specified Undertaking of the Unit Trust of India, General Insurance Corporation of India and the four public sector life insurance companies, collectively hold 29.54 per cent stake (as at September-end 2015).
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