Reason of IDBI BANK Sale out

Who is IDBI bank

Industrial Development Bank of India was established in 1964 by an act to provide credit and other financial facilities for the development of the fledgling Indian industry. It is a development finance institution and a subsidiary of Life Insurance Corporation. 

Main Reason of IDBI BANK Sale out

• Embattled IDBI Bank was penalized by the central bank in 2017 after its bad loan ratio surged and capital ratios depleted.
  

•  The state insurer acquired 51% in IDBI Bank in 2019 to help the government bail out the lender. 

• The RBI removed sanctions on the bank in March paving the way for its proposed sale.
  

• Taking loan to a loss making company by bank.