Buzzing stock: IDBI Bank surges more than 7 per cent

The shares of IDBI Bank gained over 7 per cent on Monday, ahead of Union Budget 2021 announcements.  

The budget is expected to give special attention to privatising of public sector banks (PSBs).  

Market reports suggest that the government in the Budget may elaborate on its plans to sell stakes in IDBI Bank, Central Bank of India as well as Punjab & Sind Bank.  

Also, the government will enact changes to a law governing LIC, which has assets under management amounting to more than USD 400 billion. Previously, the government had announced its plans to sell a stake in LIC, which further got delayed due to legal and administrative hurdles. However now, in order to facilitate the sale, the government is expected to get parliament approval to amend the LIC Act.  

As of January 21, 2019, LIC completed the acquisition of 51 per cent controlling stake in IDBI thereby, making it the majority shareholder of IDBI Bank.