The government can invite the expression of interest in the sale of IDBI banks in April this year, CNBC-TV18 reported on February 21 quoting the source. The sales of the IDBI bank peg has been examined by the Indian reserve bank and is expected to occur for nine months, the report said.

According to reports, government corporations and Indian life insurance are likely to sell all their shares in lenders. The 26 percent promoter cap for private sector banks is not an obstacle for the sale of shares.

“The capital of the promoter holder in a private bank is not an obstacle for the sale of the IDBI Bank. We are sure to have a good response to the Idbi flower expression,” said Government Officials to CNBC-TV18.

At present, the government and LIC each have 45.48 percent shareholders and 49.24 percent in the bank. LIC is a bank promoter with management control.

IDBI Bank became a subsidiary of LIC with the effect of January 21, 2019, after the insurance company obtained 827,590,885 equity shares in lenders. As a result, LIC finally has 51 percent of stocks circulating in the bank.

However, in December 2020, the LIC was reclassified as an association company after the IDBI Bank issued additional equity shares through quality institutional placement, which reduced insurance company shares to 49.24 percent.

Lic, which is likely to go public in March, in his draft Prospektus said that every additional capital infusion by the Life Insurance giants in the assur company can have a negative impact on financial health insurance companies.

At 10:45 a.m., IDBI Bank shares traded at RS 46.80 each at BSE, fell 1.16 percent, while the benchmark Sensex fell 215.94 points or 0.37.03.