What is the total stake being sold in IDBI Bank Ltd under the approved restructuring?
- A.45.48 per cent
- B.51 per cent
- C.60.72 per cent
- D.94.71 per cent
Correct answer
Explanation
The correct answer is 60.72 per cent. This is the aggregate equity block going to the Strategic Buyer, and it is made up of two parts: the Government of India contributes 30.48 per cent and LIC contributes 30.24 per cent, with the sale proceeds divided in that same ratio. The arithmetic is worth remembering because questions are often set on the split rather than the total. Option A, option B and option D are all wrong because they do not match the approved block; what stays behind after the sale is a residual 15 per cent with the Government and 19 per cent with LIC, and both become ordinary public shareholders at that point. Candidates should also note that the Cabinet Committee on Economic Affairs has allowed the Alternative Mechanism to sell the Centre’s residual holding later through the open market, while LIC may handle its own leftover stake as per its internal procedures.
Read the full article: IDBI Bank: CCEA Clears Sale of 60.72% Stake to Fairfax Arm
Practice Questions
Which entity has been approved as the Strategic Buyer for IDBI Bank Ltd?
- A.M/s 10955230 Canada Inc, a Fairfax Financial Holdings entity
- B.Life Insurance Corporation of India
- C.Prem Watsa Capital Partners Ltd
- D.Emirates NBD Bank PJSC
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The Cabinet Committee on Economic Affairs picked this company as the Strategic Buyer when it approved the strategic restructuring of the bank, and its parent is M/s Fairfax Financial Holdings Ltd.
Read the full explanation →Which two methods were used to arrive at the benchmark price for the IDBI Bank transaction?
- A.Discounted Cash Flow Method and Book Value Method
- B.Market Multiple Method and Asset Valuation Method
- C.Reserve Price Method and Stock Market Price Method
- D.Dividend Yield Method and Replacement Cost Method
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Two independent professional agencies valued the bank, one comparing it against the closing accounts of all public sector banks as on 31 March 2026 under relative valuation, the other weighing tangible and intangible assets, land and property included, against liabilities in the audited accounts of the same date.
Read the full explanation →What is the population norm for opening a bank branch in the Northeast, on a cluster basis?
- A.1,000
- B.2,000
- C.3,000
- D.5,000
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For the Northeast the population needed to justify a bank branch has been brought down to 2,000 on a cluster basis, which is lower than the norm of 3,000 that applies across the country, and the relaxation exists because habitations in the region are smaller and more scattered.
Read the full explanation →Where was the North East Bankers' Conclave 3.0 held?
- A.Mizoram University, Aizawl
- B.Gauhati University, Guwahati
- C.Tripura University, Agartala
- D.Rajiv Gandhi University, Itanagar
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The third edition of the conclave was held there, and Dr Sukanta Majumdar, Union Minister of State for Development of North Eastern Region and for Education, addressed it on 13 October 2026, asking banks to widen their reach and lend more readily in the region.
Read the full explanation →How many of the identified villages in the Northeast are now connected to a bank branch or India Post Payments Bank?
- A.5,905 of 9,479
- B.6,905 of 9,479
- C.7,905 of 9,479
- D.8,479 of 9,479
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The minister said that out of the 9,479 villages identified for coverage in the Northeast, 6,905 now have either a bank branch or an India Post Payments Bank point, which comes to roughly 73 per cent.
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