Govt to soon invite bids for IDBI Bank privatisation: DIPAM Secy

New Delhi: The government will soon invite preliminary bids from investors for the IDBI Bank stake sale and is working on the Expression of Interest (EoI) document, said Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM). “We have been at it for quite some time. It is also a first-of-its-kind transaction where, through a bidding route, we will be privatising a bank,” he said while addressing the ‘Ficci CAPAM 2022 – 19th Annual Capital Markets Conference’ on Wednesday.

The government and Life Insurance Corporation of India together hold 94% in IDBI Bank.

The Cabinet Committee on Economic Affairs gave in principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May 2021.

Since IDBI Bank had come out of the Prompt Corrective Action (PCA) framework, its performance has improved, which would generate greater interest among investors, he added.

In March 2021, the Reserve Bank of India had removed IDBI Bank from its enhanced regulatory supervision PCA framework.

“We should clearly look at disinvestment less from the fiscal angle but more from the angle of reforms that it can bring,” Pandey said.

The government has set a target of ₹65,000 crore from divestment in 2022-23, of which it has raised ₹24,544 crore, mostly on account of the public market listing of LIC in May this year.

Pandey urged India Inc to look at brownfield acquisitions which will bring in gains in terms of increased production and job creation.

“So, therefore, the present context of economy, where we want to go for capital formation, growth and look at this decade as India’s decade, we need to unshackle investment opportunities. And one of the investment opportunities is from the brownfield,” he said.

Source: Economic Times

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