Bank Disinvestment: This government bank is going to be sold, this is how it will affect your accounts

The country’s government bank IDBI is soon going to be converted from government to private. The government has expedited the process. According to the report, the share purchase agreement has been approved by the IMG. Let us tell you what effect this will have on your accounts.

Bank disinvestment: The country’s government bank IDBI is going to be sold. The final phase of privatization of this bank is going on. The share purchase agreement has been approved by IMG. This means that this bank will soon become private. Many companies have come forward to buy it. According to Moneycontrol’s report, Dubai’s Emirates NBD Bank is the frontrunner among them. However, the company has not yet confirmed about the deal. Let us tell you what effect it will have on common accounts if the bank becomes private.

The government has further accelerated the process of selling its stake in IDBI Bank. According to a Business Today report, the Inter-Ministerial Group (IMG) has approved the Share Purchase Agreement (SPA) after two meetings. Now it will be sent to the Core Group of Secretaries on Disinvestment. After this, the financial bidding is expected to start in the first week of September.

The report quoted the official as saying that the financial bidding process will start after the SPA gets final approval. A reserve price will be fixed for this, which will remain confidential and will not be disclosed to the bidders. The first three shortlisted bidders had raised some questions on the draft SPA, due to which there was a slight delay. But now the government is confident that the process will run smoothly. Potential buyers had submitted their expression of interest in January 2024. Despite the volatility in the market, the government believes that these cyclical issues will not affect the timeline of disinvestment.

The deal will be worth this many crores

The government is planning to complete this deal in this financial year. The government hopes to raise Rs 40,000 to 50,000 crore from this deal. Currently, the Central Government and Life Insurance Corporation of India (LIC) hold 95% stake in IDBI Bank. Out of this, 60.72% stake is being sold through this disinvestment process.

What will be the impact on the common man?

If any bank becomes private from government, then it can have many advantages and disadvantages. Customers can get better facilities than before. There are chances of improvement in all the facilities of the bank, from payment to other facilities. Private banks can be more flexible in terms of interest rates and charges, which can be either beneficial or disadvantageous for the customers.

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