Bhagwat Karad, Minister of State for Finance said on Monday that the government is conducting roadshows for IDBI Bank privatisation and determining EoI after assessing investor interest. In May last year, the Cabinet Committee on Economic Affair was given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank.
The Life Insurance Corporation (LIC) and government jointly own over 94 percent equity of IDBI Bank. However, the decision on the exact quantum of stake dilution is yet to be taken.
Karad in the Lok Sabha said that we look forward to bringing advanced technology and best management practice to IDBI Bank and intend to generate more business without depending on capital infused by the government and LIC. Moreover, we expect the strategic buyer will infuse sufficient funds.
He further added that while setting terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders will be taken into consideration by making appropriate provisions in the share purchase agreement.
