The Ministry of Finance has clarified that Cabinet has approved strategic disinvestment along with transfer of management control in IDBI Bank.
Government of India (GOI) owns 45.48 percent while Life Insurance Corporation (LIC) owns 49.24 percent equity in IDBI bank.
Further, currently LIC is the promoter and GOI is Co-promoter of IDBI Bank with management control. Whereas, LIC Board has passed a resolution to reduces its shareholding in IDBIbank through divesting its stake along with the GOI in order to relinquish management control and by taking into consideration price, market outlook, statutory stipulation and interest of policy holders.
However, the extent of respective shareholding to be divested by GOI and LIC shall be decided at the time of structuring of transaction in consultation with RBI.