 "(From left) Kishor Kharat, MD & CEO, IDBI Bank and B K Batra, Deputy MD, IDBI Bank at press conference to announce the lender's third quarter results in Mumbai (pic: Suryakant Niwate)")
Government is working on the stake sale of IDBI Bank and a decision in this regard could be taken during the current financial year, its Managing Director Kishor Kharat said on Monday.
"Government is working on it. They have declared in the Budget itself," he said.
"There are many players. I have met almost 56 foreign players during Qualified Institutional Placement (QIP), 22 domestic players. There are no time lines drawn but if you look at the record of the government, whatever they say in previous Budget, before going to next financial year, they complete. So, from that you can draw some timeline," he said.
The government in December gave approval to IDBI Bank for raising Rs 3,771 crore during the year, by way of QIP, move which will dilute its holding about 26% in the lender.
The government's holding in the bank stands at 73.98%.
As per the existing norms, government equity in a public sector bank cannot go below 52% to maintain the character of state-owned banks.
Finance Minister Arun Jaitley had last year indicated a change in the characteristics of IDBI Bank wherein government would have a majority stake, but at the same time maintain an arm's-length distance.
Citing the example of Axis Bank, he had wondered if IDBI Bank can follow that model.
The government indirectly controls 29.19% in Axis Bank through the administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), the Life Insurance Corp and four other public sector general insurance companies.
IDBI Bank came into existence with Parliament passing the IDBI Repeal Act in 2003. In terms of provisions of the Act, IDBI has been functioning as a bank in addition to its earlier role of a financial institution.
