Government May Sell IDBI Bank Stake To Life Insurance Corporation: Sources
The government is considering selling over 40 per cent of its stake in IDBI Bank to state-run Life Insurance Corporation (LIC), sources have told NDTV.
The government, which is the largest shareholder in IDBI Bank with 81 per cent stake, is likely to make around Rs 10,000-11,000 crore by selling up to 43 per cent, the sources say.
Insurance major LIC is the biggest public shareholder in IDBI Bank, with a stake of 10.82 per cent as of March.
IDBI Bank's board of directors will draw a capital-raising plan for next five years, it is learnt. The board of directors of LIC will discuss taking majority control in IDBI Bank after approval from the government, officials say.
Earlier this week, State Bank of India (SBI) managing director B Sriram was appointed IDBI Bank's interim CEO and managing director for three months. Mahesh Kumar Jain, who was brought in as the bank's CEO and managing director last year to tackle its bad loan crisis, has been appointed deputy governor of the Reserve Bank of India for a term of three years.
The government has been trying for some time to sell IDBI, which has the highest bad-loan ratio among state-run lenders in India. India Ratings & Research Pvt., the local unit of Fitch, downgraded IDBI Bank this month.
According to the bank's latest report, its bad loans stand at Rs. 55,588 crore, up from Rs. 44,753 crore in March 31, 2017. The Central Bureau of Investigation (CBI) is probing a Rs. 600-crore loan fraud case involving IDBI Bank.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
