IDBI Bank has announced that the Securities and Exchange Board of India (Sebi) has approved the reclassification of Life Insurance Corporation of India (LIC) as a “public shareholder” in the bank, contingent on the completion of the government’s strategic disinvestment process.
According to an exchange filing, Sebi’s approval comes with specific conditions:
- LIC’s voting rights will be capped at 10%.
- LIC will not exercise control over IDBI Bank’s operations.
- LIC will not enjoy any special rights, whether formal or informal.
- LIC will not have representation on the board nor act as a key managerial person.
Furthermore, Sebi has directed that LIC reduce its residual stake to 15% or below within two years post-disinvestment, in line with RBI guidelines. IDBI Bank will also need to submit the required applications to stock exchanges once the transaction is completed. Any breach of these conditions will automatically nullify Sebi’s reclassification approval.
This step is part of the strategic disinvestment plan for IDBI Bank, approved by the Cabinet Committee on Economic Affairs in May 2021, under which the government and LIC are jointly offloading stakes.
Financial Snapshot – Q1 FY26
- Standalone Net Profit: ₹2,007 crore (17% YoY growth; ₹1,719 crore in Q1 FY25)
- Net Interest Income (NII): ₹3,166 crore (2% lower YoY)
- Current Market Price (22 Aug 2025): ₹95.00 (-2.65%)
- Key Metrics: PE Ratio 12.9x | EPS 7.36 | Market Cap ₹1,02,147 Cr | PB Ratio 1.70x | Dividend Yield 2.21% | Beta 1.44 | 52-Week Range 66–106
Disclaimer: This is for informational purposes only and not investment advice.