IDBI To Raise Rs 2800cr But It's Not Going Axis's Way, Yet The Board Of Idbi Bank Wednesday Passed An Enabling Resolution To Allow It To Raise Rs 2800 Crore Via A Qualified Institutional Placement (Qip) Or Any Other Instrument Like Follow-On Public Offer.
The board of IDBI Bank Wednesday passed an enabling resolution to allow it to raise Rs 2800 crore via a qualified institutional placement (QIP) or any other instrument like follow-on public offer.
But this does not follow from recent talks that the government was looking to sell direct stake in the firm, and would hold it indirectly via other public companies, as it does in Axis Bank, a move that has allowed the latter to operate like a private sector bank.
In an interview with CNBC-TV18's Latha Venkatesh, IDBI Deputy MD BK Batra said he had not heard from government on any planned reduction of its stake. Recently, Finance Minister Arun Jaitley had said the government was evaluating options through which a bank such as IDBI could be quasi-private, like how Axis evolved from UTI.
"It was the bank’s annual plan to raise capital was Rs 5000 crore, out of which Rs 2200 crore is being infused by government in the next few days," he said, adding that the remaining will be raised from the market.
The government’s stake in the company currently stands at 76.5 percent, which would go up to 80 percent post Rs 2200 crore infusion and then again come down to around 74-75 percent after Rs 2800 crore is raised, Batra said.