Ajay Piramal may look to buy a state-run bank
IDBI Bank Ltd and a couple of other state-run banks. “Well, IDBI has been going on for years. Nothing has happened.
So, obviously, there’s no interest now. They want to change the terms. So, we’ll see.
I can’t say anything categorical today. Let’s see what the opportunities are," he added. Piramal did not participate in IDBI Bank’s divestment process, which was put on hold in November and is likely to restart only in the second half of next year.
The government, which owns 45.48% of the bank, and Life Insurance Corp. of India, which holds 49.24%, together plan to sell 60.7% of the lender. Apart from IDBI Bank, the government had announced plans to privatize two state-run banks, along with a general insurance company, in the 2021-22 Union budget.
Media reports had suggested that the two banks were Central Bank of India and Indian Overseas Bank, but the government did not move any proposal on them. Reportedly, the government is redrawing its plan and any movement on privatization will only happen after the general election in 2024. Aside from acquisitions, Piramal added that the group is keeping itself ready for a banking licence as and when an opportunity arises.
“The banking licence is worthwhile. At the right time, we will approach it. Today, we are just preparing ourselves to be more and more in line with what the regulators want," he said.
The Piramal Group houses Piramal Enterprises Ltd (PEL), among India’s biggest non-banking financial companies (NBFCs) with assets under management (AUM) of ₹64,000 crore as of 31 March. PEL has a housing finance subsidiary, Piramal Capital and Housing Finance Ltd, which bought struggling lender Dewan Housing Finance Corp. Ltd (DHFL) in 2021 through the insolvency route for ₹34,250
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