Reserve Bank Of India / One more government bank is ready to be sold before the budget, will earn 45000 crores

Reserve Bank Of India: The country's budget is to be presented on 23 July 2024. Just before this, a big news has come that another government bank can now be sold, that is, the government can privatize it by disinvesting in it. To complete this disinvestment process, possible approval has also been given by the Reserve Bank of India (RBI). In such a situation, the government can also make a big announcement about it inside the budget.

According to the news of ET, the Reserve Bank of India has given possible approval of 'fit or proper' to the bidders participating in the disinvestment of IDBI Bank. This approval has been received just before the budget. In such a situation, now all eyes are on the budget speech of Finance Minister Nirmala Sitharaman on 23 July 2024.

RBI's fit and proper approval

The plan for disinvestment of IDBI Bank was prepared by the Modi government in May 2021 itself. Since then, the government was waiting for the 'fit and proper' approval of the Reserve Bank of India for the bidders. There is a special reason for the central bank to give 'fit and proper' approval to the bidders bidding for the privatization of a bank. Under this, it assesses whether the bidder is compliant with the rules or not, as well as whether he is facing any investigation by other regulators.

45,000 crores will come in the government's account

Life Insurance Corporation of India (LIC) has a 49.24% stake in IDBI Bank. While the government's stake is 45.48%, thus the total stake of the government in this government bank is 94.72 percent. While 5.28 percent shares are with the common people in the market. According to the current market capitalization of IDBI Bank, if the government sells its stake in the bank, then an amount of up to Rs 45 thousand crore will come in its account. The market cap of IDBI Bank is around Rs 99,000 crore.