This big bank of the country is going to be sold, Canadian billionaires are buying it, do you also have an account in it?

Bank Deal: For the past several days, the government was planning to privatize IDBI Bank. But now this planning is going to be completed soon. According to many media reports, Indian-origin billionaire Prem Vats may soon become the official owner of this bank. Because he has put the biggest proposal before the government to buy this bank.

The company put forward the proposal
In fact, Fairfax Financial Holdings, the company of Indian-origin Canadian billionaire Prem Vats, is showing great interest in buying IDBI. The company has made a proposal of 5.5 billion to 5.7 billion dollars (about Rs 47,000-49,000 crore) to buy the bank.

This will be one of the largest foreign investments ever in India’s banking sector. However, the government has not yet taken a final decision on this and this proposal is currently being considered.

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Why is the bank being destroyed?
IDBI is a private sector bank in which 60.7% stake is held by the government and LIC. Which they want to sell. At present the government holds about 45.5% stake in the bank and LIC holds 49.2% stake. This decision is being taken because a few years ago IDBI Bank was struggling with bad loans (NPA) and weak financial condition. In 2018, RBI had also placed the bank in the Prompt Corrective Action (PCA) framework.

However, now the bank has reduced bad loans, increased profits and improved its financial position. Because of which global investors are ready to invest in it. Two companies Fairfax Financial Holdings and Dubai’s Emirates NBD have placed stakes for the bank.

What will be the impact on customers?
Even if Fairfax buys the bank’s stake, there will be no immediate major change for common customers. Bank branches, deposits, loans and other banking services will continue as before. At present, the government is reviewing the bids of both the companies and a decision on this deal will be taken only after getting the final approval.

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