Potential IDBI Bank bidders have asked the government for tax benefits from the accumulated ₹45,000 crore losses to accrue to the acquiring entity in case the lender is merged with another bank, people familiar with deliberations said.
This may require amendments to the tax laws as there is no provision for adjusting carried forward losses against profit when the entities involved in a merger are private parties.
IDBI Bank is 95% owned by Life Insurance Corp of India (LIC) and the government, but the Reserve Bank of India (RBI) has classified it as a private lender.
Source:
Economic Times
