Amidst reports that the government may divest a part of its stake in IDBI Bank to various State-owned entities, including Life Insurance Corporation of India and retail investors, the bank’s chief said on Wednesday that no communication has been received from the Centre in this regard.

The reports come even as the government will be pumping in ₹2,229 crore into the bank to help it maintain its Tier-I (core) capital in accordance with regulatory guidelines. This move will, in fact, increase the government’s stake in the public sector bank to 80.16 per cent from 76.5 per cent now.

‘Have own strategy’

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.

Finance Minister Arun Jaitley reportedly told a TV channel is 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).

Meanwhile, to protest the government’s contemplated move to dilute its stake in IDBI Bank to below 51 per cent, the United Forum of IDBI Officers and Employees has called for a one-day nation-wide strike on November 27.

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