The government intends to come out with Expression of Interest (EoI) for strategic disinvestment of IDBI Bank by December.
“Our preparation for Expression of Interest (EOI) has begun and our target is to issue that by December,” Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), told BusinessLine in an interview.
Government of India (GoI) and LIC together own more than 94 per cent of equity of IDBI Bank (GoI 45.48 per cent, LIC 49.24 per cent). LIC is currently the promoter of IDBI Bank with Management Control and GoI is the co-promoter.
Pandey said that the required amendment in the Act has been done which means there is no problem in terms of licensing, etc. Advisors have been appointed and soon they will engage with the RBI to structure the transaction.
“The RBI has to clear what will be the level of equity we can divest, what would be the glide path and who can come in. These are critical issues which will form the EoI,” he said.
Talking about asset monetisation related to the strategic disinvestment cases and closure cases of Central Public Sector Enterprises (CPSE), Pandey said that the Department of Public Enterprises (DPE) will be assigned the task. As on date, DIPAM is looking after this.