New Delhi: The government is unlikely to go for a strategic stake sale of state-owned IDBI Bank during the current fiscal due to some procedural issues. “Strategic stake sale in IDBI Bank may not happen this fiscal due to some procedure issues but the bank can raise funds through QIP,” sources told PTI. Last week, the government gave its approval to IDBI Bank for raising Rs 3,771 crore during the year, by way of Qualified Institutional Placement, a move which will dilute its holding by about 26% in the lender.
The government’s holding stands at 80.16%. As per existing norms, government equity in a public sector bank cannot go below 52% to maintain the character of state-owned banks. Analysts feel that since IDBI Bank is not a nationalised bank, there is some operational freedom as far as stake dilution is concerned.
