As per RBI notification, IDBI Bank has been categorized as a private sector lender following the acquisition of majority stake by Life Insurance Corporation. IDBI Bank has been under the prompt corrective action framework of RBI that bans it from corporate lending and branch expansions, salary hikes and other regular activities.
In January 2019, LIC completed the process of picking up a controlling 51% stake in the nearly crippled IDBI Bank. IDBI Bank has been categorized as a ‘private sector bank’ with effect from January 21, 2019.
Static/Current Takeaways Important For LIC AAO Mains Exam:
- Now total government sector banks are 20 in number.
- After 1 Apr 2019 merger of 2 more Government Banks Dena and Vijaya Bank in Government-owned bank of Baroda, the number of Government Sector Banks will be reduced to 18.