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Last Updated : Jul 12, 2019 06:01 PM IST | Source: Moneycontrol.com

Govt to seek clarity from Law Ministry on IDBI status as private institution: Report

The Life Insurance Corporation of India (LIC) in January 2019 acquired a 51 percent stake in the Bank, which reclassified it as a private sector financial institution

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The government may approach the  Ministry of Law and Justice for clarification on monitoring of the recently privatised IDBI BankThe Economic Times reported.

The Life Insurance Corporation of India (LIC) in January 2019 acquired a 51 percent stake in the Bank, which reclassified it as a private sector financial institution.

As government holding in the Bank now stands at 46.6 percent, clarification is being sought on whether the institution should be monitored as per rules for state-run entities or at par with private banks.

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The debate was sparked by a Central Vigilance Commission (CVC) response to a query from the Finance Ministry. It stated that IDBI would continue under government oversight.

Private lenders are outside the CVC's scope, but IDBI was set up under an Act of Parliament and remains a public financial institution under the Companies Act 2013. The doubt over management control has thus clouded the debate.

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First Published on Jul 12, 2019 06:00 pm
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