Mumbai3 hours ago
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The Reserve Bank of India has given ‘fit and proper’ approval to the bidders for IDBI Bank ahead of the Union Budget 2024. This claim has been made in some media reports. After the news of approval, IDBI shares are trading up by about 5%.
The Narendra Modi government had started selling its stake in IDBI Bank in May 2021. Since then, the Center was waiting for the green signal from the RBI. RBI was assessing whether the bidders met the ‘fit and proper’ norms or not.
IDBI shares rose by about 5%
After the approval of the Reserve Bank, IDBI shares are up by about 5% today. It is trading at Rs 92. In the last one year, its shares have seen a rise of more than 60%. At the same time, IDBI Bank shares have increased by more than 36% this year.
Government holds 45.48% stake in IDBI
Currently, the government holds 45.48% stake in IDBI. Life insurance giant LIC is the largest shareholder with 49.24% stake. Both have jointly decided to sell 60.7% stake in IDBI.
12 government banks in India control 60%
Currently, there are 12 public sector banks in India which together control about 60% of the total assets of the banking system. Despite the promises, the central government had postponed the sale of its stake in these entities till the 2024 Lok Sabha elections.
Sitharaman had said- will privatize two banks
In the 2020 Budget, Union Finance Minister Nirmala Sitharaman had announced the government’s intention to privatize at least two banks and one insurance company. However, this scheme has not been implemented yet.
