New Delhi: The Reserve Bank of India (RBI) is expected to provide a road map for the new owner of IDBI Bank to reduce their shares because the government seeks its equity, along with shares held by Life Insurance Corporation (LIC) from India, at the end of the fiscal year At the moment.
Although the RBI has not secured its view of new licenses for private banks, new structural announcements can help produce more interest in the lender, which has been searched for the center for the reposition for two decades but with a little success.
In the past, the RBI had indicated that the sale of government pegs and the announcement of new norms was not related.
Sources, however, said that the government had been dialogue with the RBI on the sale of pegs and regulators realized the need to provide a road map for comfort for potential buyers.
The current guidelines set minimum share ownership of 40% in terms of paid up capital or voting rights.
More than 10 years, this needs to be diluted by 20-30% and decreases to 15-26% between 12 and 15 years, depending on vintage licenses.
The internal group regulated by the RBI has proposed this rework, in addition to allowing home companies into space.
Many bidders can seek clarity on these aspects.
Recently, the Department of Investment and Management of Public Assets said that the government and LIC would decide the extent to which peg sales during the process of completing the agreement.
Although private investors are interested that the government does not have bets, something also recorded by Niti Aayog in several recommendations, said government sources, the idea of handing it to the bidder to decide the best action.
“Someone might want the majority control, while someone might like to do with a lower bet.
Let the bidder decide,” said a source.
The government currently holds 45.5% in financial institutions – a universal bank with LIC share ownership is pegged at 49.2%.
On Friday, the bank section rose 0.4% to close at Rs 37.9 at BSE but was still lower than the price of the acquisition of LIC.
LIC has obtained shares at the IDBI Bank in three stages.
The owner of the new IDBI might get a RBI road map to cut stocks
