Govt says IDBI Bank sale process followed due procedure, defends second bid round
- On Thursday, the Department of Investment and Public Asset Management defended the strategic sale process of IDBI Bank, maintaining that neither the reserve price nor the established process changed during the second round of bidding.
- The clarification addresses questions regarding the divestment process, in which the Department and Life Insurance Corporation of India are selling a majority stake in IDBI Bank.
- Under powers delegated by the Cabinet Committee on Economic Affairs , the Core Group of Secretaries on Disinvestment conducted the second round; independent agencies revised assessments in May to reflect current financial positions.
- The Department stated the first round ceased to have effect after initial bids were rejected; the request for proposal dictates that bidders cannot challenge decisions regarding bids falling below the reserve price.
- No pre-determined benchmark existed for bids, according to the Department, which noted that independent agencies compared bid-discovered prices and valuations to determine if offers were reasonable.
22 Articles
22 Articles
Public Banks Not Assets to Be Sold Off, They Are Tools to Build Nation: Rahul Amid IDBI Bank Sale Row
Amid the IDBI bank disinvestment row, Congress leader Rahul Gandhi has expressed solidarity with the bank employees and questioned the government's decision to sell off the profitable public bank to a Canadian firm. The Leader of Opposition in the Lok Sabha
Congress built banks, BJP is selling them: Rahul Gandhi's attack over IDBI Bank sale
Rahul Gandhi has backed IDBI Bank employees opposing the Centre's proposed majority stake sale to Fairfax. His open letter questions the rationale and flags concerns for workers, depositors and reservation policies.
IDBI Bank Sale: Govt Says Reserve Price Unchanged, Second Bidding Round Raised Value by Rs 3,917 Crore
Get latest articles and stories on Business at LatestLY. The government has clarified that the reserve price for the strategic restructuring of IDBI Bank was neither reduced nor increased during the second bidding round, while the revised process helped raise the discovered bid price by Rs 3,917 crore, according to a Finance Ministry release. Business News | IDBI Bank Sale: Govt Says Reserve Price Unchanged, Second Bidding Round Raised Value by …
IDBI Bank sale: Govt says reserve price unchanged, second bidding round raised value by Rs 3,917 crore - The Tribune
The government has clarified that the reserve price for the strategic restructuring of IDBI Bank was neither reduced nor increased during the second bidding round, while the revised process helped raise the discovered bid price by Rs 3,917 crore, according to a Finance Ministry release.
IDBI Bank sale row: Finance Ministry defends valuation process, says reserve price was not changed
The finance ministry has defended the valuation process used in the IDBI Bank stake sale, saying the methodology and bidding procedure were reviewed and approved by the core group of secretaries on disinvestment. It said Fairfaxs Rs 81-a-share bid was above the benchmark and independent fair-value estimates, while safeguards such as a double-blind process and limited tax indemnity helped maximise value for the government and LIC.
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