The Cabinet on Wednesday gave in-principle approval to the proposal to sell IDBI Bank’s stake to a select investor and hand over the management of the bank to it.
As per the announcement made in this year’s budget on Wednesday, the cabinet gave in-principle approval to the proposal to sell IDBI Bank’s stake to a select investor and hand over the management of the bank to it. The central government and LIC hold over 94 per cent of the total stake in IDBI Bank. After this decision of the government, shares of IDBI Bank rose strongly on Thursday and the stock rose 15 per cent to Rs 43.50 on the BSE. IDBI Bank’s investors quickly became silver in the stock and their wealth increased by about 6 thousand crore rupees.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the strategic sale of IDBI Bank. It will be decided in consultation with Reserve Bank of India (RBI) how much stake of Central Government and LIC to be sold in this bank.
While presenting the budget for 2021-22, Finance Minister Nirmala Sitharaman had announced that some public sector banks (PSBs) would also be privatized in the disinvestment program for the current financial year.
IDBI Bank shares rose 15 percent
LIC holds 49.21 per cent shares of IDBI Bank and is also its promoter and has control of the bank’s management. The bank’s stock has gained momentum on Thursday after the government approved the strategic sale. The stock has risen by 15 percent.
Profit of 6 thousand crores rupees
On Wednesday, IDBI Bank’s stock closed at Rs 37.95 per share. The bank’s market cap at this price was Rs 40,805.37 crore. Today, with the stock reaching a high of Rs 43.50, the market cap of the bank increased to Rs 46,772.95 crore. In this way, the investors of IDBI Bank got a profit of Rs 5,967.58 crore in a few hours’ business.
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