New IDBI owners may get RBI road map to cut stake

idbi bank, reserve bank of india, LIC, life insurance corporation, New Delhi, bank of india, Centre, India

(This story originally appeared in on Jul 31, 2021)

NEW DELHI: The Reserve Bank of India (RBI) is expected to provide a road map to the new owners of IDBI Bank for reducing their stake as the government seeks to sell its equity, along with shares held by Life Insurance Corporation (LIC) of India, by the end of the current fiscal year.

Although the RBI has not firmed up its views on new licensing norms for private banks, announcement of the new structure may help generate more interest in the lender, which the Centre has been seeking to reposition for two decades but with little success.

In the past, the RBI had indicated that the government’s stake sale and announcement of the new norms were not linked. Sources, however, said that the government has been in dialogue with the RBI on stake sale and the regulator was aware of the need to provide a road map for comfort to potential buyers.

idbi bank, reserve bank of india, LIC, life insurance corporation, New Delhi, bank of india, Centre, India

The current guidelines stipulate 40% minimum shareholding in terms of the paid up capital or voting rights. Over 10 years, this needs to be diluted to 20-30% and further reduced to 15-26% between 12 and 15 years, depending on the licence vintage. An internal group set up by the RBI had proposed reworking these, apart from allowing corporate houses into the space.

Many of the bidders may seek clarity on these aspects. Recently, the department of investment and public asset management had said that the government and LIC would decide on the extent of stake sale during the process of finalising the deal.

Although private investors are keen that the government holds no stake, something that NITI Aayog too had noted in some of its recommendations, government sources said, the idea was to leave it to bidders to decide the best course of action. “Someone may want majority control, while someone may like to do with a lower stake. Let the bidders decide,” said a source.

The government currently holds 45.5% in the financial institution-turned-universal bank with LIC’s shareholding pegged at 49.2%. On Friday, the bank’s share rose 0.4% to close at Rs 37.9 on BSE but is still lower than LIC’s acquisition price. LIC had acquired shares in IDBI Bank in three tranches.

Internet Explorer Channel Network
News Related

OTHER NEWS

DC's new film Injustice terms Kashmir 'disputed territory', draws flak on social media

Image: DC Comics DC’s new animated film ‘Injustice’ has landed in a soup for calling Kashmir as ‘disputed’ territory. The viral clip on social media platforms shows Superman and Wonder Woman ... Read more »

Bharat Biotech proud of contribution to historic landmark: Dr Krishna Ella on COVID vaccination coverage crossing 100 cr mark

As India on Thursday crossed 100 crore COVID-19 vaccination, Bharat Biotech‘s Chairman and Managing Director Dr Krishna Ella said that the firm is proud to have contributed to this ‘historic ... Read more »

Centre clears 3 per cent Dearness Allowance hike for govt employees

In a festive boost, the Union Cabinet on Thursday okayed a 3 per cent increase in the Dearness Allowance of Central Government employees and pensioners. This hike, according to reports, ... Read more »

PSU banks likely to get capital support in Q4 to meet regulatory requirements

The government is likely to pump capital in public sector banks during the last quarter of the current financial year to meet the regulatory requirements. The government in the Budget ... Read more »

SC Collegium recommends transfer of AP HC judge Justice Lalitha Kanneganti to Telangana HC

The Supreme Court Collegium has recommended the transfer of Andhra Pradesh High Court judge Justice Lalitha Kanneganti to Telangana High Court. The Collegium headed by Chief Justice N V Ramana ... Read more »

Dubai Realty Sector Offers Sustainable Growth

There is now a renewed interest in Dubai’s real estate sector, which experts believe is heading towards the path of sustainable growth. That Dubai’s realty sector is doing well reflects ... Read more »

India Rayakan 1 Miliar Vaksin Covid dengan Luncurkan Lagu dan Film

© Copyright (c) 2016 TEMPO.CO foto TEMPO.CO, Jakarta – India merayakan tonggak sejarah pemberian 1 miliar dosis vaksin COVID-19 pada Kamis, 21 Oktober 2021. Perayaan digelar pemerintah dengan lagu dan ... Read more »

Dearness allowance for central govt employees hiked by 3% with effect from July 1, 2021

The Union Cabinet has approved a hike in the dearness allowance (DA) for central government employees, with effect from July 1, 2021, reports said on October 21. The decision will ... Read more »

Multibagger Alert: This solar play has soared over 1,200% in 18 months

New Delhi: Amid the global energy crisis, shares of Borosil Renewables, the only producer of solar glasses in India, have been on a roll recently. The scrip has jumped as ... Read more »

PM Narendra Modi to attend Glasgow climate conference

Indian Prime Minister Narendra Modi will attend the U.N. climate summit in Glasgow, the country’s environment minister said on Thursday, in a boost for global efforts for steeper emission cuts ... Read more »

Anil Kumar Goel buys stake in this microcap

New Delhi: Marquee investor Anil Kumar Goel has bought a significant stake in microcap stock Samtex Fashion, as per the latest corporate filing. According to the latest data from Trendylne, ... Read more »

Smartphone for inter pass girls, scooty for graduate girls if Congress forms govt in UP: Priyanka Gandhi Vadra

Priyanka Gandhi Vadra After promising 40 per cent tickets to women in the Uttar Pradesh assembly elections next year, Congress leader Priyanka Gandhi Vadra announced on Thursday that all class ... Read more »

Suntik 1 Miliar Vaksin Covid-19, India Heboh Buat Perayaan

© Medcom 1 Miliar vaksin diberikan, setelah setengah tahun lonjakan kasus yang tajam hampir menghancurkan sistem kesehatan di India. New Delhi: Kementerian Kesehatan India mengatakan, pihaknya memberikan satu miliar dosis ... Read more »

Amit Shah conducts aerial survey of rain-ravaged areas of Uttarakhand; relief, rescue ops continue

Union Home Minister Amit Shah Union Home Minister Amit Shah undertook an aerial survey of the rain-ravaged areas of Uttarakhand on Thursday as relief and rescue operations continued in the ... Read more »

China's bank sector's bad loan ratio rise as pandemic impact persists

China’s banking sector saw its bad loan ratio rise to 1.9% at the end-September versus 1.86% three months earlier as the impact of the pandemic persisted and loan forbearance policies ... Read more »

New norms put auto debits in no man's land

Mumbai: If you couldn’t renew monthly subscriptions to the New York Times platform or Netflix and Amazon Prime streaming services, you shouldn’t have blamed technology. New central bank rules on ... Read more »

YES Bank Q2 results tomorrow: Profit or loss? Analyst views differ

NEW DELHI: Analyst views differ widely on YES Bank ‘s bottom line in September quarter, but all agree the private lender may see a spike in slippages, a fall in ... Read more »

‘Call it a miracle': Woman believed to be 70 years old gives birth to her first child in India

© Supplied Jivuben Vallabhai Rabari (seen here with her husband and newborn baby) begged doctors to perform the IVF procedure, saying she was willing to die trying to have a ... Read more »

Airports set to increase revenue after Tata Group takes over Air India

Air India | Representative image The aviation industry is abuzz with what Air India’s privatisation means for the sector. For starters, industry experts said that with the Tatas getting Air India, ... Read more »

Pengantin India Naik Panci Raksasa ke Pesta Pernikahan Gara-gara Banjir

© Copyright (c) 2016 TEMPO.CO foto TEMPO.CO, Jakarta – Sepasang suami istri di India datang ke pesta pernikahan mereka dengan cara yang tak biasa. Mereka terpaksa menggunakan panci raksasa akibat ... Read more »

COVID effect: When the weakest quarter becomes the strongest for airlines

Representational image. Traditionally, Indian aviation has been divided into two ‘good’ and two ‘not good’ quarters. More often than not, this is also reflected in airline results. The April-May-June quarter ... Read more »

100-cr milestone achieved through made-in-India vaccines: COVID Task Force chief

As the total COVID-19 vaccine doses administered in India crossed the 100-crore milestone, COVID Task Force chief V K Paul said on Thursday said this is a remarkable feat and ... Read more »

India shows exemplary capabilities to ensure people's welfare: Niti Aayog VC on vaccine milestone

Niti Aayog Vice Chairman Rajiv Kumar on Thursday said India once again shows exemplary capabilities to deliver the solutions for ensuring people’s welfare as the total COVID-19 vaccine doses administered ... Read more »

India crosses 100-crore-vaccination mark | The Everest is yet to be conquered

Despite the hostile terrain, the northern state of Himachal Pradesh, where Malana is located, earlier this month became the first in India to administer at least one COVID-19 vaccine dose ... Read more »

Delhi Police to SC: Need four more months for probe into case against Shivinder Singh

Delhi Police on Thursday told the Supreme Court it needed four more months to complete the probe in a case in which former Fortis Healthcare promoter Shivinder Mohan Singh is ... Read more »

India now as a 'protective' shield' of 100 crore vaccine doses: PM Modi

India now has a strong “protective shield” of 100 crore vaccine doses to combat Covid-19, Prime Minister Narendra Modi said on Thursday, as the country passed this important milestone in ... Read more »

Farmers have right to protest but they can't block roads indefinitely, says SC

The Supreme Court on Thursday said farmers protesting at Delhi borders against the three farms laws have the right to agitate but they cannot block roads indefinitely. A bench headed ... Read more »

As India administers 100 cr COVID-19 vaccine doses, experts urge caution, say pandemic not yet over

Even as India reached the landmark of 100 crore COVID-19 vaccinations on Thursday, experts urged caution and said that the pandemic is far from over. Former Director-General of Indian Council ... Read more »

NCB in Bollywood: Ananya Pandey summoned for questioning

Image: Twitter/Ananya Pandey The Narcotics Control Bureau (NCB) has issued a summons to Bollywood actor Ananya Pandey’s. The NCB is yet to confirm if the summon is related to Aryan ... Read more »

Varroc Engineering up 8% as HDFC AMC ups shareholding

NEW DELHI: Shares of Varroc Engineering jumped almost 8 per cent on Thursday as HDFC Asset Management Company took a 0.58 per cent stake in the company through open market ... Read more »

Shoppers Stop rallies 20% after upbeat Q2 results

New Delhi: Shares of Shoppers Stop zoomed as much as 20 per cent on Thursday after the company reported a strong set of numbers in September 2021 quarter. The retail ... Read more »

UK borrowing halves in first half of tax year as Rishi Sunak readies budget

British public borrowing fell by around half in the first six months of the current financial year compared with a year earlier, when the economy faced the full force of ... Read more »

Green hydrogen to account for 20% of European power demand by 2050: Statkraft

Hydrogen produced from renewable energy sources will account for 20% of Europe’s power consumption in 2050, and for 10% globally, a report published by Norwegian power company Statkraft on Thursday ... Read more »

100 heritage monuments to be lit in colours of Indian flag to mark 100 crore COVID vaccination feat

The Archaeological Survey of India (ASI) will light up 100 of its heritage monuments in colours of the national flag to mark 100 crore COVID-19 vaccine doses being administered in ... Read more »

Over 103 crore COVID-19 vaccine doses provided to States, UTs: Centre

The government has provided more than 103.5 crore COVID-19 vaccine doses to States and union territories (UTs), said the Union Health Ministry on Thursday. A total of 1,03,53,51,045 vaccine doses ... Read more »

Gauri Lankesh murder: SC sets aside HC order quashing charge sheet against accused for KCOCA offences

The Supreme Court on Thursday set aside the Karnataka High Court order quashing the charge sheet against an accused in the murder of journalist Gauri Lankesh for purported offences under ... Read more »

Shah Rukh Khan meets Aryan Khan at Arthur Road jail

Actor Shah Rukh Khan paid a visit to his son Aryan who is lodged in Mumbai’s Arthur Road jail in a drugs haul case, on October 21. The the 23-year-old was arrested after ... Read more »

100 crore vaccination milestone: 61% Indian citizens willing to take third dose, finds survey

Source: AP As India achieved the 100 crore COVID-19 vaccine doses milestone, at least 61 percent of citizens have expressed willingness to take the third dose of COVID-19 vaccine, if ... Read more »

Havells slumps 7% on disappointing Q2 results

NEW DELHI: Shares of Havells India slumped more than 7 per cent in early trading Mumbai on Thursday as the consumer electrical goods maker posted a 7.34 per cent fall ... Read more »

Why Indian Doctors Are Taking Booster Shots Of COVID-19 Vaccine

Ever since the pandemic first struck, doctors and healthcare workers have emerged as our first line of defence against infection. Their contributions have been widely reported and lauded. Some of ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic