The Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, has approved the investment of IDBI Bank. Also, the management of the bank is scheduled to be transferred. In a budget speech in February, Finance Minister Nirmala Sitharaman addressed IDBI Bank’s investment portfolio.
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Previously, the transfer of management control was approved by the LIC board. The Government of India holds 45.48 per cent stake in IDBI Bank while LIC holds 49.24 per cent. Currently, LIC IDBI has management control over the bank. At the same time, the Government of India is in the role of promoters.
With this investment, it is expected that the bank will have new money, technology and management, which will accelerate the growth of IDBI Bank. Also, it is possible to network with the bank and business without the help of the government and LIC. The money earned from this investment will be spent on the development of the people, the government said.
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Amid all this, the bank posted a net profit of Rs 512 crore in the March quarter. The bank reported a net profit of Rs 135 crore for the quarter. A year later, the bank saw a 38 percent growth in revenues. Also, after 5 years, the bank made a profit in any financial year. In 2020-21, the bank will raise Rs 1,359 crore.
