The government may approach the banking regulator for easing the fit and proper norms to allow a consortium to bid for the public sector IDBI Bank.
The Department of Investment and Public Asset Management (DIPAM) has been in discussions with the Reserve Bank of India (RBI) on the proposed sale of IDBI Bank for some time now.
"We will see if the rules can be eased for bidding through a consortium," a government official told Business Today TV.
The RBI's nod is crucial for the sale and only those investors who meet fit and proper criteria would be allowed to bid for the bank.
"We have been working with the RBI to stitch things together. Currently, roadshows are on and will continue till the first week of June. We are seeking investor comments before finalising the details of the sale including the amount of government shareholding that that would be divested to a private bidder," the official added.
The government holds a 45.48 per cent in IDBI Bank, while LIC holds 49.24 per cent. "At this stage we cannot comment on how much stake will be offloaded", the official said.
Bidders will be invited to express interest for IDBI Bank after the roadshows get over and the government firms up the sale minutiae.
The government had amended the IDBI (Transfer of Undertaking and Repeal) Act, 2003, to grant a license to IDBI Bank under section 22 of the Banking Regulation Act after the centre offloads its stake in the lender.
The Cabinet Committee on Economic Affairs had given an in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May last year.
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