New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd.
The Union government and LIC together own more than 94% of equity of IDBI Bank with the government holding 45.48% and LIC 49.24%. LIC is currently the promoter of IDBI Bank with management control and the government the co-promoter.
LIC Board has passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank by divesting its stake along with strategic stake sale to give up management control. The decision has been taken after considering price, market outlook, statutory stipulation and interest of policy holders.
Prime Minister Narendra Modi is the chairman of CCEA. The extent of respective shareholding to be divested by the government and LIC will be decided at the time of structuring of transaction in consultation with RBI.
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