Divestment push: RBI allows IDBI Bank bidders to own more than 40%

Govt and LIC look to sell 51-74% stake in the lender through strategic disinvestment

The Reserve Bank of India (RBI) is learnt to have accepted the Centre’s request for allowing non-financial institutions and non-regulated entities to own more than 40 per cent of IDBI Bank, as the Union government and Life Insurance Corporation (LIC) look to sell 51-74 per cent stake in the lender through the strategic divestment process.

Non-financial institutions and non-regulated entities, such as private equity firms, currently, can own only 10 per cent and 15 per cent, respectively, in banks, while regulated entities and public sector undertakings (PSU) are allowed to hold up to 40 per cent. The RBI allows the holding