The Board of Directors of IDBI Bank has approved the transfer of its existing Demat Business to its wholly owned subsidiary, IDBI Capital Market Services Ltd. (ICMS). This transfer involves moving both NSDL and CDSL Depository Participant IDs to ICMS. The consideration for this transaction is set at ₹5.50 crore, payable over one year post-completion, which is expected in April 2026. The move is executed at arm’s length and involves transferring a unit deemed immaterial to the bank’s overall turnover.
Board Approval for Business Reorganization
IDBI Bank Limited announced that its Board of Directors convened on February 21, 2026, and formally approved a significant restructuring initiative. The core decision involves transferring the ownership and management of the Bank’s existing Demat Business to IDBI Capital Market Services Ltd. (ICMS), which is a wholly owned subsidiary of IDBI Bank.
Transaction Details and Mechanism
The transfer is being executed via the transfer of the Depository Participant (DP) registrations held by IDBI Bank for both NSDL and CDSL DP IDs to ICMS. The disclosure confirms that ICMS is already a SEBI-registered entity engaged in various capital market services, including Stockbroking and Depository Participation.
Financial Consideration and Timeline
The total consideration agreed upon for the sale/disposal amounts to INR 5,50,00,000 (Rupees Five Crore Fifty lakhs Only). This amount is scheduled to be received by the Bank over a period of one year from the final date of transaction completion. The anticipated completion date for the sale/disposal is set for April 2026, subject to necessary regulatory approvals.
Related Party and Materiality Assessment
The transaction has been classified as falling within the scope of Related Party Transactions. However, it was confirmed that the terms of the transfer were executed at arm’s length, and prior approval from the Audit Committee of the Board (ACB) has already been secured. Furthermore, the business unit being transferred is considered Not material, as its turnover contributed less than 0.032% of the Bank’s Total Income during the last financial year.
It was noted that the formal Agreement or Memorandum of Undertaking has yet to be executed between the parties as of the date of the announcement.
Source: BSE
