The Reserve Bank of India (RBI) has submitted a crucial report regarding the divestment of IDBI Bank, according to sources reported by CNBC-Awaaz. The report specifically addresses the "Fit & Proper" conditions required for potential buyers interested in acquiring IDBI Bank.
Earlier, the Divestment Department had forwarded the names of prospective bidders for IDBI Bank to the RBI for evaluation.
Details of the RBI's findings and recommendations from the report have not been disclosed publicly at this time.
In June, Moneycontrol reported that the long-awaited privatisation of some small public sector banks (PSBs) may finally gain traction in the fiscal year 2024-25, according to industry experts.
Chandan Sinha, former executive director of the Reserve Bank of India, commented, "We saw the IDBI Bank stake sale happen in the past few years. Privatization of other banks can also happen this year. It has been pending for a long time."
Also Read | Banking sector: IDBI Bank privatisation, IBC reforms may top next government’s agenda
Currently, India has 12 state-run banks, collectively holding approximately 60 percent of the total assets in the banking system. Despite previous commitments, the government's plans to divest its stakes in these entities were delayed until after the 2024 Lok Sabha elections. In the Budget 2020, Finance Minister Nirmala Sitharaman had announced intentions to privatize at least two banks and one insurance company; however, these plans remained unrealized.
(This is a developing story, more details to follow)
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