IDBI Bank categorised as private lender

Mumbai, March 14

IDBI Bank has been categorised as a private sector lender following acquisition of majority stake by Life Insurance Corporation, the RBI said. In January, LIC completed the process of picking up a controlling 51% stake in the nearly crippled IDBI Bank.

“IDBI Bank has been categorised as a ‘private sector bank’ for regulatory purposes by RBI with effect from January 21, 2019 consequent upon LIC acquiring 51% of the total paid-up equity share capital of the bank,” the RBI said.

It has been under the prompt corrective action framework of RBI that bans it from corporate lending and branch expansions, salary hikes and other regular activities. — PTI