The RBI, on Thursday, said that IDBI Bank has been categorised as a private sector bank for regulatory purposes with effect from January 21, 2019. This follows Life Insurance Corporation of India (LIC) acquiring 51 per cent of the total paid-up equity share capital of the bank.
In April 2005, IDBI Bank was categorised under a new sub-group, ‘other public sector banks,’ by the RBI.
The ‘other public sector banks’ categorisation, according to the RBI’s letter to IDBI Chairman on April 15, 2005, was “in view of the assurance to the Parliament given on December 8, 2004, by the Finance Minister during the discussion on the Repeal Bill, 2003, that the government holding in IDBI Ltd would always be above 51 per cent.”
Meanwhile, IDBI Bank said its board will meet on March 19, 2019, to consider the proposal for approval of rupee bond borrowing limit of ₹4,000 crore for FY20.
Source – The Hindu Business Line