17,000 new credit cards issued by ICICI linked to wrong users
Vandhe Bharat Passengers to only get half-a-litre water bottles; Boost & Horlicks no longer a health drink; IRCTC launches new Leh-Ladakh package and more....
The government is looking to sell 45.48% of its shareholding in IDBI Bank.
The Centre is all set to roll out the bank privatisation process of Public Sector Banks (PSBs), starting with the IDBI Bank’s strategic divestment, the Business Standard reported on Tuesday. It will be in talks with the Reserve Bank of India (RBI) to draw out a security clearance framework for screening potential bidders of PSBs. For this the Department of Investment and Public Asset Management (DIPAM) will be putting in place the framework which would ensure that potential buyers will meet the fit and proper criteria of the RBI.
In doing so, DIPAM is planning to bring the central bank on board to vet candidates in the first step itself. According to the publication, the bank privatisation process would be different from the sale of any other Public Sector Undertaking (PSU), and more restrictions and measures will have to be put in place.
DIPAM’s framework would ensure that the privatisation process would go forward only when suitable candidates show interest in acquiring the lender, it added. This will further ensure that the process does not fall through at a later stage if the bidders fail to meet the RBI’s criteria.
Central Bank of India and IOB may be privatised
The Central bank considers several factors to determine whether a candidate is fit and proper to be a shareholder of the bank. This includes applicant’s integrity, reputation, track record in financial matters, tax laws compliance, ongoing proceedings of serious disciplinary or criminal nature and financial misconduct among others.
Two other PSBs, as announced by the government in the union budget will also be privatised under the framework. Central Bank of India and Indian Overseas Bank have also been reportedly considered for privatisation.
The government is looking to sell 45.48% of its shareholding in IDBI Bank. Life Insurance Corporation of India (LIC) will also sell 49.24% of its stake to transfer the management control to the new buyer. By assessing the market appetite and in consultation with the transaction advisor and RBI, the government and the LIC will together determine the quantum of the stake dilution. KPMG India has been appointed by the government as the transaction advisor for the IDBI bank sale.