New Delhi, Mar 14 : The Reserve Bank of India on Thursday categoriesed IDBI Bank as a private sector bank with effect from January 21, 2019.
This follows the Life Insurance Corporation of India 's acquisition of 51 per cent of the total paid-up equity share capital of the bank.
"IDBI Bank Limited has been categorized as a Private Sector Bank for regulatory purposes by Reserve Bank of India with effect from January 21, 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank," said the central bank.
The RBI also said the State Bank of India, ICICI Bank and HDFC Bank will continue to be termed as Domestic Systemically Important Banks (D-SIBs).
D-SIB means that the bank is too big to fail. According to the RBI, some banks become systemically important due to their size, cross-jurisdictional activities, complexity and lack of substitute and interconnection. Banks whose assets exceed 2 per cent of GDP are considered part of this group.
The RBI states that should such a bank fail, there would be significant disruption to the essential services they provide to the banking system and the overall economy. UNI