Government not planning strategic sale of IDBI Bank

New Delhi, July 26 (IANS) The government on Tuesday denied it is considering any proposal of strategic sale, involving surrender of majority ownership, of state-run IDBI Bank.

Minister of State for Finance Santosh Kumar Gangwar in response to a query on the matter told the Rajya Sabha in a written reply that the government is not considering any proposal of strategic sale in IDBI.

The central government held 73.98 per cent shares in IDBI Bank, and state-run Life Insurance Corp held around 14.37 per cent of the shares, as on March 31, 2016.

Noting, however, that state-run banks, including IDBI, have been allowed to raise capital through follow-on public offers or qualified institutional placements, Gangwar said this could result in dilution of “government holding (in banks) up to 52 per cent in a phased manner based on their capital requirement, their stock performance, liquidity, market conditions etc.”

–IANS

bc/ss/rn/vt

Related Posts

Leave a Reply