Page 7 - Idbi Bank

No govt, LIC veto post privatisation of IDBI, to give promoters free hand

The government and state-owned insurer LIC, who will continue to hold significant shareholding in IDBI Bank post its privatisation, will not veto any proposals of the new owner as part of their plan to give the incoming promoters a free hand, a senior official said. The government earlier this month invited bids for the sale of 60.72 per cent stake in IDBI Bank, which is 45.48 per cent owned by the government and 49.24 per cent by the Life Insurance Corporation of India (LIC). At Friday's closing price of Rs 44.30, IDBI Bank is valued at Rs 47,633 crore but the government is looking for at least 30 per cent markup in the sale. At the current price, sale of 61 per cent stake would fetch about Rs 29,000 crore to the government. The official said post-privatisation, the government and LIC shareholding will come down to 34 per cent but they do not intend to move in tandem to block any special resolution proposed by the new promoter. This is with a view to assuaging the concerns of ...

State Bank of India, IDBI Bank hike retail fixed deposit rates

For 1 year to less than 2 years, SBI is offering 6.10% as compared to 5.60% earlier

IDBI Bank net profit jumps 46% to Rs 828.09 crore in Sept quarter

Profits would have been higher if not for aggressive provisioning: IDBI Bank CEO

India pushing for valuation of $7.7 billion for state-owned IDBI Bank

India is pushing for a valuation of around 640 billion rupees ($7.7 billion) for state-owned IDBI Bank Ltd. in what could be the biggest sale of the government's stake in a lender in decades

IDBI Bank net profit up 46% at Rs 828 cr in Q2 FY23, net NPAs down to 1.15%

IDBI Bank on Friday reported a 46 per cent rise in its net profit to Rs 828 crore for the second quarter ended September 30. The bank had posted a net profit of Rs 567.12 crore in the year-ago period. The total income in the September 2022-23 quarter rose to Rs 6,065.51 crore from Rs 5,129.92 crore a year ago, IDBI Bank said in a regulatory filing. The private sector lender, controlled by India's largest insurer LIC, improved its asset quality by bringing down its gross non-performing assets (NPAs) to 16.51 per cent of the gross advances as of September 30, 2022, against 21.85 per cent at the end of September 2021. Its net NPAs too came down to 1.15 per cent from 1.71 per cent. However, the provisioning towards bad loans and contingencies for the September quarter of FY23 was raised to Rs 770.72 crore from Rs 571.43 crore in Q2 FY22. It was lower than Rs 959.23 crore for June 2022-23 quarter. Shares of IDBI Bank closed 1.33 per cent lower at Rs 44.15 apiece on BSE.

IDBI Bank privatisation: LIC to recover its investment by time of sale

State-owned insurance behemoth LIC is expected to recover its Rs 21,624 crore investment it had made in IDBI Bank as share prices are likely to rebound to 2019 levels by the time the lender is privatised, an official said. The official said that since the commencement of the IDBI Bank privatisation process in May last year, the share price has jumped from Rs 35 a share to Rs 45 a piece currently. "We are expecting IDBI Bank scrip to move up further. The price is expected to move up closer to the price at which LIC had picked up stake in 2019," the official told PTI. The government and Life Insurance Corp (LIC) together hold 94.72 per cent in IDBI Bank. Of this, LIC's holding is 49.24 per cent, while the government holds the rest 45.48 per cent stake. Public shareholders hold 5.28 per cent. LIC had bought a 51 per cent stake in IDBI Bank in 2019 for Rs 21,624 crore at an average price of Rs 61 per share. Following a QIP issue in December 2020, the stake of LIC came down to 49 per ..

IDBI stake sale: To help the buyer, centre asks Sebi to ease norms

The government offered to sell a total of 60.72% stake in the IDBI bank, in early October

Centre seeks waiver in key norm for IDBI Bank stake sale: Report

Govt has reportedly asked SEBI if it can classify the govt, LIC's remaining stake of about 34% after the sale as public float, which will help the new buyer meet the minimum public shareholding norm

Taxes to come to govt's aid, achieve 6.4% fiscal deficit goal for FY23

Centre has already collected half the targeted revenue in the first six months of the current financial year even as customs and excise duty collection figures are yet to come in

IDBI Bank's privatisation process likely to conclude by Sep 2023: Officials

The financial bids for IDBI Bank privatisation is likely to be invited by March and the conclusion of the sale process is expected in the next financial year, officials said. Last week, the government along with Life Insurance Corporation (LIC) invited preliminary bids for selling 60.72 per cent stake in IDBI Bank. The last date for putting in Expression of Interest (EoI) is December 16. Once the EoIs come in and the interested parties clear RBI's 'Fit and Proper' assessment and gets Ministry of Home Affairs (MHA) security clearance, data room access would be given to qualified bidders. It is only after due diligence, that bidders would put in financial bids. Usually it takes about six months for the process of due diligence to get completed and financial bids to come in. We hope to invite financial bids for IDBI Bank by March, officials added. Considering that this would be the first case of strategic sale in bank, a lot of queries are expected to be raised during the due diligenc

IDBI Bank surges 11% as govt invites bids for strategic divestment

LIC, which owns 49.2% in IDBI Bank, will cut its stake to 19%, while the government will reduce its shareholding to 15% from 45.5% at present

Bidders for IDBI Bank to declare no conviction or adverse regulatory orders

The move comes in the backdrop of the government terminating the sale of Central Electronics Ltd (CEL) to Nandal Finance & Leasing last month

IDBI Bank bidders need to seek MHA security clearance in bidding process

In a first, the government has made it mandatory for interested buyers of IDBI Bank to provide details for security clearance from the Ministry of Home Affairs (MHA) in the first stage of the bidding process. So far, in all instances of CPSE privatisation, the government would seek details regarding security clearance of the bidders at the second stage of the bidding process. This meant that bidders who qualified in the first or the Expression of Interest (EoI) round, were required to seek security clearance from the government while placing their financial bids. Inviting Expression of Interest (EoI) from bidders for buying the government and LIC's 60.72 per cent in IDBI Bank, the Department of Investment and Public Asset Management (DIPAM) said interested parties (IPs) who clear the 'Fit & Proper' assessment by RBI and the security clearance by the government/MHA shall be notified as the Qualified Interested Parties (QIPs). Only the QIPs will get access to the data room of IDBI ..

LIC, Centre to sell 60.7% stake in IDBI Bank; DIPAM invites EoIs

DIPAM invites EoIs; last date to submit bids is Dec 16

IDBI Bank privatisation: Govt, LIC to sell 60.72% stake, invite bids

The last date for submission of bids or Expression of Interest is December 16

NARCL makes offers to acquire Jaypee Infratech debt held by Public Banks

NARCL's Rs 3,570-crore offer for the Rs 9,234 crore debt held by nine public sector lenders has triggered a Swiss challenge auction where it will have the right to match the winning bid and take over

Led by HDFC twins, India sees record $124-billion M&A deals in H1FY23

Bankers said the second half of the ongoing financial year will be led by government divestments

IDBI Bank completes sale of entire stake of Ageas Federal Life Insurance

Belgium-based Ageas Insurance International has completed the acquisition of a majority stake in its Indian joint venture Ageas Federal Life Insurance (AFLIC), picking up 25 per cent stake of IDBI Bank for Rs 580 crore. With this, it has become the first foreign partner in the Indian life insurance sector to own a majority stake of 74 per cent. In the non-life segment, it was Italy's financial services major Generali which raised its stake in Future Generali India Insurance to 74 per cent in May this year. Last fiscal, the Indian government allowed foreign players to raise their stakes in Indian joint venture insurance firms up to 74 per cent from 49 per cent earlier as a move to attract investment as well as to increase insurance penetration in the country. "Ageas completes the acquisition of a majority stake in the Indian life insurance joint venture Ageas Federal Life," Ageas said in a release. The global insurer said it has acquired the additional 25 per cent stake (from IDBI

Bank, crypto apps under attack: Everything you must know about SOVA virus

A new version of the Trojan virus, SOVA, has reportedly targeted over 200 mobile banking and crypto apps and is stealing their login credentials, and cookies

Banks alert customers about mobile banking malware targeting over 200 apps

This malware captures the credentials when users log into their net-banking apps and access bank accounts