According to a September 6 report from CNBC-TV18, the central government and the Life Insurance Corporation (LIC) of India are set to sell a 60 percent share in IDBI Bank. By October, we will be inviting Expressions of Interest (EoI) for the divestment process. According to earlier reports, the government and LIC may sell up to 65 percent of their equity in IDBI Bank. As of June 30, the two owned over 94 percent of IDBI Bank, of which the Centre owned 45.48 percent and LIC had 49.24 percent.
At each stage of the divestment process, the government will ask the Reserve Bank of India (RBI) for due diligence. Promoter holdings are unrestricted as long as a 15-year stake reduction plan is submitted. For the divestment, the cap on voting rights of 26% remains in place.
The IDBI stock was up roughly 0.46 percent to Rs 43.55 per share at the time of writing. In 2021, the Indian government declared it would stop doing business with IDBI Bank. The government’s assets may be sold or liquidated as part of the disinvestment policy.
Governments employ disinvestment as a strategy to lighten their financial burdens and raise money for essential public services. Additionally, it is possible to privatize the assets. The sale of IDBI Bank’s interest has had numerous ups and downs, and the process has been considerably delayed. The government originally intended to request EoI in May, but due to its efforts to contact possible buyers as well as bidders, the procedure was delayed.
LIC
The most reputable insurance provider in India is the Life Insurance Organization of India (LIC), a statutory insurance and investment corporation with its headquarters in Mumbai. Also, the Indian government is the owner of it. The Life Insurance of India Act, which nationalized the insurance sector in India, was approved by the Indian Parliament on September 1, 1956, leading to the establishment of the Life Insurance Corporation of India. The state-owned LIC was formed through merger of over 245 insurance companies and provident societies.
According to LIC, there were 290 million insurance holders as of 2019, a total life fund of 28.3 trillion, and a total value of 21.4 million for policies that were sold during the 2018–19 fiscal year. Additionally, the business claimed to have resolved 26 million claims in 2018–19. With revenue of $775,283 crore (US$97 billion) and a profit of $4,415 crore (US$550 million), it was rated 98th on the 2022 Fortune Global 500 list.
Continue to read more latest news
231 total views, 2 views today