Shares of IDBI Bank surged up to 12 percent in trade on Friday (October 16, 2020) after reports that the centre will look for in-principle approval from the CCEA on reducing its holding in the bank to 47.11 percent. Post this the stake sale plan for the public sector bank shall be determined.
"The inter-ministerial feedback has come, an in-principle approval will be taken from CCEA," an official told a leading business daily.
Also there are news making rounds that the largest public insurer which also holds a stake of up to 51 percent in the PSB is also keen on paring its stake in the lender. When the bank severe NPA hit and was put under the RBI's PCA, LIC came to its rescue and picked a controlling stake in IDBI Bank.
The details on the deal shall be decided based on the alternative mechanism of a group of ministers after the approval which shall be asked for within this month most likely, said the official.
Last, the stock of IDBI quoted higher by almost 9 percent at Rs. 36.60 per share.