The Centre and state-owned insurance behemoth LIC may together offer to offload up to 60 per cent stake in IDBI Bank for its disinvestment, according to a report by the Financial Express.
The government, which aims to conclude the transaction by March 2023, will float an expression of interest (EoI) for the strategic disinvestment of IDBI Bank next month, a senior official told the publication.
While the exact size of stake dilution is not yet finalised, the government and LIC believe that sale of 74 per cent stake, which is at par with the maximum FDI allowed in private banks, may not be feasible given the current market conditions.
Currently, the government (45.48 per cent) and LIC (49.24 per cent) together hold a 94.78 per cent stake in IDBI Bank. The bank posted a net profit of Rs 512 crore for the quarter ended March 2022.
DH could not independently verify the report.
Earlier, in an interview LIC Chairman M R Kumar had said that the insurer may not completely divest stake in IDBI Bank.