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After ceding 51 per cent controlling stake in IDBI Bank to LIC last financial year, the government now plans to sell the balance holding of 46.46 per cent in the bank.
“In the last few years, the government has taken concrete steps to bring our banking system to be robust. However, there is a need for greater private capital.
“Accordingly, it is proposed to sell the balance holding of Government of India in IDBI Bank to private, retail and institutional investors through the stock exchange,” said Union Finance Minister Nirmala Sitharama in her Budget speech.
Underscoring that the number of public sector banks is shrinking and the number of branches and ATMs are also reducing, Vithal Koteswara Rao AV, General Secretary, All India IDBI Bank Officers’ Association, said his association is opposed to the move to privatise IDBI Bank as it will inconvenience the general public and employees.
LIC had completed the process of acquisition of 51 per cent stake in IDBI Bank on January 21, 2019. The public sector insurance behemoth has been re-classified as promoter of the bank (with management control), with Government of India continuing to be the co-promoter of the bank (without management control).
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