Govt may push IDBI stake sale plan to FY18

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The government may have delayed its plans of paring its stakeholding in IDBI Bank, an alert from Bloomberg TV India has said.
The government plans to cut stake to under 50% in the public sector bank, but is now expected to push it to FY18, the alert said. The government currently owns 80.16% of the bank’s shares.
Another alert also said that ‘in principle’ the government was committed to cut stake in the bank.

Last month, the government had said that it may not cut stake in the bank this fiscal. The government had cited procedural issues for the decision.
Bank employees, unhappy with the government’s decision to cut stake in the bank, had called for a strike in March. Employees and officers of the lender under the banner of United Platform of IDBI Bank Unions had given the strike call.
“We want a written assurance from the government that their shareholding in IDBI Bank will not be less than 51% at all times as assured on the floor of the Parliament,” it said.
In the Budget, Finance Minister Arun Jaitley had said the government was open to bringing its stake in IDBI Bank to below 50%.
“The process of transformation of IDBI Bank has already started. The government will take it forward and also consider the option of reducing its stake to below 50%,” Jaitley said in the February 29 Budget speech.