RBI to complete vetting bidders for IDBI Bank by October end

The Indian central bank is anticipated to expedite a crucial process of screening IDBI Bank's prospective purchasers and finish it by the end of October, aiding with the sale of a majority interest in the lender. 

 

Together, the federal government and the state-owned Life Insurance Corp of India, which each own 49.24% and 45.48% of IDBI Bank, intend to sell 60.7% of the company. 

 

After Kotak Mahindra Bank, the Prem Watsa-backed CSB Bank, and Emirates NBD presented their initial bids to purchase a controlling share in IDBI Bank, the Reserve Bank of India started the vetting procedure known as "fit and proper criteria" in April. 

The government's divestment objective for fiscal 2024 includes 510 billion rupees, which includes the sale of the IDBI Bank holding.

 

However, it is also the only significant divestment the government is focusing on this year, raising concerns about the target being met, as attention turns to the upcoming state and national elections. 

Following the completion of the RBI screening, the government will permit qualified bidders access to the private information that IDBI Bank has been gathering, including the pension fund and insurance or medical coverage for workers.

 

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