Government receives RBI nod on structuring IDBI stake sale
Sources told CNBC-TV18 that the expression of interest for the IDBI stake sale is expected sometime by September.
The Reserve Bank of India (RBI) has given its nod to the government on structuring the IDBI stake sale. All the issues relating to the structuring of the deal have been suitably resolved with the Reserve Bank of India.
There were talks around the promoter roadmap — RBI has a 15-year timeline in mind as per sources, reducing the stake to a certain level, the merger option, and membership of the bidder consortia. There were also some requests about allowing private equity funds to pick up a stake in the bank.
The government had been in consultation with the RBI on these long-standing issues.
Sources say the expression of interest is expected sometime by September.
The sources also told CNBC-TV18 that officials are hoping that if a transaction cannot be completed in the current financial year — although formally, March is still the timeline — maybe at least the financial bids can be opened in the current financial year.
Even this, they said, would be a huge plus as far as the government's strategic stake sale is concerned, because this will be the first bank on the block.
The sources said consultations with RBI would continue because the government and the central bank would have to continuously work out the EoI and financial bid stages.
First Published: Aug 16, 2022 1:55 PM IST
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