existing guidelines of reserve Bank of India Restricting foreign ownership in new private banks. The central bank’s residency norm for promoters is applicable only for newly established banks and will not apply to an existing entity like IDBI Bank, the Department of Investment and Public Asset Management said in response to queries from interested bidders.
“The residency norm shall not be applicable to Consortium Fund Investment Vehicles incorporated outside India,” it said.
The Government of India and the RBI will also consider relaxing the five-year lock-in period for shares if a non-banking financial company is merged with IDBI Bank. The clarification comes ahead of the December 16 deadline for submission of expression of interest for majority stake in IDBI Bank, one of the few lenders in which the government is trying to sell its stake.
government and Life Insurance Corporation of India Together holds 94.71% stake IDBI Bank And 60.72% want to sell.