Govt holding roadshows for IDBI Bank privatisation to assess investor interest

In a written reply to the Lok Sabha, Karad said it is expected that the strategic buyer will infuse funds, bring new technology and best management practices in IDBI Bank and shall generate more business without dependence on LIC and government for capital.

State-owned LIC, currently having management control, has a 49.24 percent stake, while the government holds 45.48 percent in the bank. Non-promoter shareholding stands at 5.29 percent.

"... roadshows are currently being held to assess the investors' interest before floating the Expression of Interest (EoI)," Karad said.

The minister added that while deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement.

Last month, LIC had said it would like to retain some stake in IDBI Bank so that the insurer continues to reap the benefits of the bancassurance channel.

Bancassurance is an arrangement between a bank and an insurance company allowing the latter to sell its products to the bank's customers and others through the branch network.