IDBI Bank sale: RBI may not relax stake-dilution timeline for new buyer

Govt intermediaries sought exemptions in IDBI bank sale under RBI rules, which require promoters' shareholding to be reduced by 26% post acquisition

The Reserve Bank of India (RBI) is unlikely to grant any special dispensation to the new buyer of IDBI Bank over the post-acquisition glide path for reducing promoter shareholding in the long term.

The government-appointed intermediaries had sought relaxations in the RBI’s guidelines that require promoter shareholding to be reduced to 26 per cent in 15 years. In its deliberations with the government and its advisors, the banking regulator had communicated that its extant guidelines would prevail, said an official.

Queries sent to the RBI spokesperson did not elicit a response.

As promoters are required to reduce their shareholding in