Headquartered in Chennai in Tamil Nadu, Shriram Group of Companies is engaged in various types of business.
Central Government has started the process of privatization of IDBI Bank. Part of it had announced plans to sell more than 60 percent stake in the central government and LIC. Sriram Group from Tamil Nadu said that it wants to buy IDBI Bank.
Headquartered in Chennai in Tamil Nadu, Shriram Group of Companies is engaged in various types of business. The major industry is financial services. The company provides various types of financial services including two-wheeler loan, small and micro loans, and other types of loans. Sriram Group listed two companies namely Sriram City Union Finance and Sriram Transport Finance on the stock exchange in December 2021. The firm has total assets under management of Rs 1.5 lakh crore. Sriram Group, which has been continuously expanding its companies, is now interested in buying IDBI Bank.
The central government had announced on October 7 that it was going to sell shares to privatize IDBI Bank. It had announced that those interested should inform by December 16, 2022. Various mechanisms have been devised for the privatization of IDBI. The central government and LIC have said how the companies buying the shares should be.
The process of privatization of IDBI Bank has been framed in two phases. The Reserve Bank of India will assess the eligibility of companies seeking to acquire IDBI Bank. The selected companies will have to get approval from SEBI and major departments. The documents of the successful companies will be verified and the amount will be fixed for them.
The central government and LIC together hold 94.72 percent stake in IDBI Bank. It is currently planning to sell 60.72 percent shares in the first phase. Companies interested in buying this bank should have a net worth of Rs 22,500 crore. Only then can IDBI buy the bank. IDBI Bank has 1,884 branches and 3,400 ATM centers across the country. This bank has an average deposit of Rs 2.3 lakh crore. And IDBI Bank has made a net profit of Rs 2,518 crore in the financial year 2021-22.
Not only Sriram Group, but Fairfax Finance has said it wants to buy IDBI Bank. Shriram Group started from a very small scale and today it is a huge company. It is still working on expanding its branches.