Deepam Secretary Tuhin Kanta Pandey On Wednesday, it said the department is working on the expression of interest (EoI) and will soon invite initial bids from investors. privatization of IDBI Bank. Cabinet Committee on Economic Affairs gives in-principle approval for strategic disinvestment and transfer of management control IDBI Bank in May 2021.

At present, the government holds 45.48 per cent stake in the bank, and Life Insurance Corporation of Indiawho is currently the promoter of the bank, holds 49.24 per cent stake.

“We have been on this for quite some time. This is also the first transaction of its kind where we will privatize a bank through bidding. Both the government and LIC Overall holds 94 per cent stake in IDBI Bank,” he said while addressing the ‘FICCI Capum 2022 – 19th Annual Capital Markets Conference’.

As the bank comes out of the Prompt Corrective Action (PCA) framework, he said its performance has improved which will generate more interest among investors.

RBI removed in March 2021 IDBI Bank After nearly four years on improved financial performance from its enhanced regulatory oversight PCA framework.

“We are working on the expression of interest (EoI) and (it) will be released soon,” said the secretary, Department of Investment and Public Asset Management (DIPAM).

The government, along with LIC, will decide how much stake it will sell in IDBI Bank before seeking initial bids. The quantum of stake dilution in the EoI is expected to be outlined.

The government has set a target of Rs 65,000 crore from disinvestment in 2022-23 (April-March). It has already raised Rs 24,544 crore, most of which is contributed by the country’s largest insurer LIC In May this year.

The shares of LIC were listed at a discount of Rs 865 on the initial public offering price of Rs 949 per share. Since then it has been trading below the issue price. Shares of LIC closed at Rs 663.20, down 1.04 per cent on Wednesday.

Speaking about LIC, Pandey said that the insurance company is taking several steps to improve its topline and bottomline.

“Management is taking post listing initiatives, for example: Re-engineering process to improve 13-month and 25-month continuity, where LIC has been relatively low compared to peers. LIC Investment Relations, Key Growth It is bringing in new professionals in areas like officer, chief technology officer, cash management, actuarial valuation and looking at regular IEV (Indian Embedded Value) disclosures,” he said.