BANKING AFFAIRS

Detailed explanation-1: -As of March 31, 2022, LIC is the largest shareholder in IDBI Bank holding to the tune of 529.41 crore equity shares or 49.24%. While the government held 488.99 crore equity shares or 45.48% in IDBI Bank. The divestment is divided into two sequential stages.

Detailed explanation-2: -The Indian government will allow a consortium of foreign funds and investment firms to own more than 51% in IDBI Bank Ltd., according to a government clarification on Tuesday. The current guidelines of the Reserve Bank of India restrict foreign ownership in new private banks.

Detailed explanation-3: -Capital infusion. Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions.

Detailed explanation-4: -IDBI Bank Limited has been categorized as a ‘Private Sector Bank’ for regulatory purposes by Reserve Bank of India with effect from January 21, 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.