Nilam’s big statement on privatization of IDBI Bank, shares became rocket, prices rose by 8%, know what is the government’s plan

News India Live, Digital Desk: The clouds of uncertainty that remained for the last several weeks regarding the privatization of IDBI Bank have now dissipated. Finance Minister Nirmala Sitharaman made it clear on Friday that the government will continue the process of disinvestment of this bank and no changes have been made in it. After this ‘confidence’ of the Finance Minister, tremendous buying of IDBI Bank shares was seen in the stock market and the share prices increased during intraday trading. Jumped by 8% to ₹79.90 Reached the level of.

Uncertainty over: Why was the process halted?

Last month, there were reports that the bids received for IDBI Bank were lower than the ‘reserve price’ set by the government, due to which the deal was temporarily postponed. Due to this there was fear among investors that perhaps the government would not sell this bank now. However, during an event of State Bank of India (SBI) in Pune, Sitharaman made it clear that the government is firm on its plan to sell its 30.48% stake and LIC its 30.24% stake. overall 60.72% stake The process of disinvestment will be completed.

Situation clear on merger of public sector banks also

During the press conference, when the Finance Minister was asked about the consolidation of public sector banks, he said that at present no new proposal on this is on the table. He informed that a high level banking committee is monitoring the activities of the banking sector. Sitharaman stressed that the size of the Indian economy has become so large that we need big banks which can meet the domestic demand. He said that India’s economic growth is based on domestic activities, especially agriculture.

Investors’ enthusiasm returned: Market value increased by more than ₹ 12,000 crore

With this surge on Friday, the market value of IDBI Bank increased by crores of rupees in a single day. Market experts believe that the news of the disinvestment process getting back on track will improve the valuation of the bank. The government had invited bids (EOI) for this process in January 2023 itself, but it was getting delayed due to RBI’s ‘fit and proper’ scrutiny and valuation issues. Now after the statement of the Finance Minister, it is believed that the government may soon invite revised bids.