IDBI may be allowed to merge with pvt bank after stake sale by Centre, LIC

The government sees banks and large non-banking financial companies as the most suitable contenders to participate in the sale of IDBI Bank

The conditions for the strategic divestment of IDBI Bank could facilitate its merger with other financial entities, including commercial banks, which might be looking to lap up a stake in the lender, said an official.

The Centre is yet to come out with the preliminary information memorandum that would include eligibility conditions for the sale of IDBI Bank. However, Business Standard has learnt that the criteria may allow banks to place bids subject to a merger plan approved by the Reserve Bank of India (RBI).  

The merger may be subsequent to the stake sale in the lender. This implies that