In the report “Banks face tough second half” (November 2), IDBI Bank was categorised as a private sector bank. According to the Reserve Bank of India, the Industrial Development Bank of India Ltd. (since renamed IDBI Bank Ltd.) was incorporated under the Companies Act 1956, as a limited company, registered with the registrar of companies, Maharashtra, Mumbai by a certificate of incorporation dated September 27, 2004. In terms of the Articles of Association of the IDBI Bank Ltd., the central government, being a shareholder of the company shall, at all times, maintain not less than 51 per cent of the issued capital of the company. Considering the shareholding pattern, IDBI Ltd. has been categorised under a new sub-group called “other public sector banks”. After a fresh capital infusion of '3,119.04 crore by the Government of India in July 2010, the present government stake in IDBI Bank stands at 65.14 per cent. The Reserve Bank of India has, in its letter dated April 15, 2005, confirmed that IDBI Ltd. may be considered a government-owned bank (www.idbi.com / www.rbi.org.in). The finance ministry has in a circular dated December 31, 2007 advised the secretaries of all ministries/departments of the government that the bank may be treated on a par with nationalised banks/State Bank of India by the government departments/public sector undertakings/other entities for all purposes, including deposits/bonds/investments/guarantees and government business.
Niloy Das, on email
