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Cabinet approves sale of IDBI Bank to Fairfax for Rs 52,878 crore
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
Largest FDI in India's finance: the IDBI stake split that GS-III banking answers must explain
The Union Cabinet has approved the sale of IDBI Bank to Fairfax for Rs 52,878 crore, described as the largest foreign direct investment in India's financial sector. After the sale the government's stake in the bank will fall to 15 per cent and that of the Life Insurance Corporation will come down to 19 per cent. LIC had acquired a majority stake in IDBI Bank in 2019, after which the Reserve Bank of India recategorised it as a private-sector bank.
Why it matters: factual, Prelims-type
What you need to know
2 ನಿಮಿಷ
The Union Cabinet has approved the sale of IDBI Bank to Fairfax for Rs 52,878 crore, described as the largest foreign direct investment in India's financial sector.
After the sale the government's stake in the bank will fall to 15 per cent and that of the Life Insurance Corporation will come down to 19 per cent.
LIC had acquired a majority stake in IDBI Bank in 2019, after which the Reserve Bank of India recategorised it as a private-sector bank.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- Union Cabinet approved sale of IDBI Bank to Fairfax for Rs 52,878 crore
- Described as the largest foreign direct investment in India's financial sector
- Post-sale, government stake falls to 15 per cent and LIC's to 19 per cent
- LIC acquired a majority stake in IDBI Bank in 2019
- RBI recategorised IDBI Bank as a private-sector bank after the LIC acquisition
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- IDBI Bank was recategorised by the RBI as a private-sector bank after LIC acquired a majority stake in 2019.
- Disinvestment means the government selling part or all of its equity in a public-sector entity; strategic sale also transfers management control.
- Foreign direct investment involves a lasting interest and control in an enterprise, unlike portfolio investment, which is in listed securities without control.
- The Reserve Bank of India regulates banks under the Banking Regulation Act, 1949, including the categorisation of a bank as public or private sector.
ಮೇನ್ಸ್
GS-III (Economy): The sale of IDBI Bank is a strategic disinvestment that also marks the largest FDI in India's financial sector. It reflects the policy of reducing the state's role in commercial banking and recapitalisation burden, while LIC's exposure falls from a majority to 19 per cent. The way forward lies in transparent valuation, regulatory oversight by the RBI, and protecting depositors, employees and priority-sector lending.
Quick recall
Answer before you reveal
2019ರಲ್ಲಿ ಐಡಿಬಿಐ ಬ್ಯಾಂಕ್‌ನ ಬಹುಪಾಲು ಷೇರುಗಳನ್ನು ಖರೀದಿಸಿದ ಬಳಿಕ ಆರ್‌ಬಿಐ ಅದನ್ನು ಖಾಸಗಿ ವಲಯದ ಬ್ಯಾಂಕ್ ಎಂದು ಮರುವರ್ಗೀಕರಿಸಿತು. ಆ ಷೇರುಗಳನ್ನು ಖರೀದಿಸಿದ ಸಂಸ್ಥೆ ಯಾವುದು?
- ಭಾರತೀಯ ಸ್ಟೇಟ್ ಬ್ಯಾಂಕ್
- ಭಾರತೀಯ ಜೀವ ವಿಮಾ ನಿಗಮ (ಎಲ್‌ಐಸಿ)
- ಪಂಜಾಬ್ ನ್ಯಾಷನಲ್ ಬ್ಯಾಂಕ್
- ಭಾರತೀಯ ಲಘು ಉದ್ಯಮಗಳ ಅಭಿವೃದ್ಧಿ ಬ್ಯಾಂಕ್ (ಸಿಡ್ಬಿ)
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: B — ಭಾರತೀಯ ಜೀವ ವಿಮಾ ನಿಗಮ (ಎಲ್‌ಐಸಿ) ಸರಿಯಾದ ಉತ್ತರ. ಭಾರತೀಯ ಜೀವ ವಿಮಾ ನಿಗಮ ಸರಿಯಾದ ಉತ್ತರ. 2019ರಲ್ಲಿ ಎಲ್‌ಐಸಿ ಐಡಿಬಿಐ ಬ್ಯಾಂಕ್‌ನ ಬಹುಪಾಲು ಷೇರುಗಳನ್ನು ಖರೀದಿಸಿತು; ಬಳಿಕ ಆರ್‌ಬಿಐ ಅದನ್ನು ಖಾಸಗಿ ವಲಯದ ಬ್ಯಾಂಕ್ ಎಂದು ಮರುವರ್ಗೀಕರಿಸಿತು.
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