RBI permitted bidders for IDBI Bank to own more than 40%

The Reserve Bank of India (RBI), as perceived by the Union Government and Life Insurance Companies (LIC), has reportedly accepted the center’s request to permit non-financial institutions and unregulated entities to own more than 40 percent stake in IDBI Bank and to sell between 51 and 74 percent of the lender through a strategic divestment process.

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KEY POINTS:

• As the Union government and Life Insurance Corporation (LIC) look to sell 51–74% of the lender through the strategic divestment process, the Reserve Bank of India (RBI) has agreed to the Centre’s request to permit non-financial institutions and non-regulated entities to own more than 40% of IDBI Bank.
• Through a tactical divestiture, the government and LIC intend to sell 51–74 percent of the lender.
• According to the person, the banking regulator had notified that, at the center’s request, it would permit unregulated organisations to acquire more than 40% of IDBI Bank.

Important Takeaways For All Competitive Exams:

• Governor of Reserve Bank Of India: Shaktikanta Das
• Managing Director & Chief Executive Officer of IDBI Bank: Rakesh Sharma

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