IDBI Corporatisation Bill In Winter Session

New Delhi, October 22: | Updated: Oct 23 2002, 05:30am hrs
The government plans to table in the winter Session a bill for corporatising the Industrial Development Bank of India (IDBI) and repealing the IDBI Act. The official spokesperson in the banking division said in an informal briefing on Tuesday that, for the first time, it has also initiated a stock-taking exercise to hammer out a workable proposal for restructuring the beleaguered IFCI Ltd.

Earlier, finance secretary S Narayan convened a meeting with major institutional stakeholders and lenders of the two institutions, along with the Reserve Bank, banking division and law ministry officials. The shareholders included the Life Insurance Corporation, Punjab National Bank, Bank of Baroda, State Bank of India and GIC.

While IDBI chairman PP Vora was present during the discussions, the IFCI chairman was not invited. The spokesperson explained that in the case of IFCI, the aim was to assess the perceptions of shareholders and lenders and not of the management.

The modalities of whether IDBI would ultimately convert into a universal bank by applying for a banking licence or merge with an existing one would be examined after it becomes a corporate entity under the Companies Act, 1956.

The spokesperson said IDBI was not seeking financial support from the government. IDBI was proudly claiming that it has never defaulted on any of its commitments, he added. As for IFCI, there were too many imponderables in its case, he said.