Amid reports of government considering sale of stake in IDBI Bank to LIC to raise nearly Rs 10,000-11,000 crore, shares of the public lender soared 5.9 percent to Rs 61.15 on NSE today. The government is mulling over a plan to sell a 40 to 43 percent stake in IDBI Bank to LIC in order to raise nearly Rs 10,000-Rs 11,000 crore, Reuters reported citing news agency NewsRise. The government holds nearly 81 percent stake in IDBI Bank, while LIC holds 10.8 percent as on March 31, according to the exchange data. LIC board has also approved the initiative to take hold of bank’s stake, the report said.
IDBI Bank stock has fallen 3.5 percent this year up to Thursday, compared with a 21.3 percent decline in the Nifty PSU bank index.
Meanwhile, SBI’s Managing Director B Sriram was on Wednesday appointed as the MD and CEO of IDBI Bank for a temporary period of three months. He has been appointed in place of incumbent Mahesh Kumar Jain who was recently named Deputy Governor of the Reserve Bank of India (RBI). The Appointments Committee of the Cabinet has approved the appointment of Sriram as Managing Director and Chief Executive Officer of IDBI Bank for a temporary period of three months with effect from Jain’s demitting office, the order issued by the Personnel Ministry said. Sriram has been working as the MD (Corporate and Global Banking) in SBI since July 2014.
He had been Managing Director of State Bank of Bikaner and Jaipur. Sriram joined the government-run bank in 1981 as a Probationary Officer. During over three-decade-long career, he held several positions and also had a stint at SBI’s Singapore office. His appointment signals the government’s efforts to ensure that the bank does not remain headless after Jain’s appointment in the central bank.