Corporate governance key to IDBI Bank's future

In medical parlance, IDBI Bank is probably being shifted from ICU (intensive care unit) to HDU (high dependency unit)

Life Insurance Corporation of India’s (LIC’s) open offer made for IDBI Bank Ltd has said all provisions of India’s banking act and the Reserve Bank of India (RBI) instructions and guidelines for private banks are applicable to the target company — positioning IDBI Bank as a private bank. The RBI, however, continues to classify it in the category of “other public sector banks”.

This creates an existential dilemma for IDBI Bank which is yet to be out of the woods. For the ninth consecutive quarter, it reported a net loss of Rs 4,185.5 crore for the December quarter, raising the pile