IDBI equity transfer soon

By Our Staff Reporter

BANGALORE, SEPT. 27. The transfer of 51.11 per cent of the equity share held by Industrial Development Bank of India to 32 public sector banks, Life Insurance Corporation, General Insurance Corporation and financial institutions owned or controlled by the Central Government, would be completed shortly, Mr. P. B. Nimbalkar, Chairman and Managing Director said.

It may be recalled that the transfer of the Rs. 23 crore equity share was approved by the Centre, as per Sec. 4B of the Small Industries Development Bank of India (Amendment) Act 2000.

Speaking at an official press meet at the new office premises of the bank's Bangalore branch, Mr. Nimbalkar said the shareholding of IDBI in all the State finance corporations would also be transferred to SIDBI. The chairmen of the SFCs would then be appointed by SIDBI in consultation with the State governments.

A report had been submitted by Mr. G. P. Gupta, former chairman of IDBI, on the recapitalisation of SFCs, Mr. Nimbalkar said. The report had recommended an expenditure of Rs. 3,600 crores over four-five years, to offset the losses incurred by the SFCs. As per the recommendations, 50 per cent of the Rs. 3,600 crores would have to be borne by the Centre and the Reserve Bank of India, 25 per cent by IDBI and SIDBI and 25 per cent by the State governments. The recommendations are pending with the Centre.

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Section  : Business
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