There is a big update related to the privatisation of IDBI Bank.
The government has formally invited financial bids for the strategic disinvestment of IDBI Bank Ltd., as per sources. The move marks a crucial step in the long-pending privatisation of the bank.
This followed the completion of all key regulatory and security clearances, sources said. The Govt aims to announce the winning bidder by end-March 2026, though the final closure of the transaction could extend beyond the current financial year. Fairfax Financial, led by Prem Watsa, and Kotak Mahindra Bank are among the leading contenders for the asset.
Under the proposed transaction, the government plans to divest a 30.48% stake in IDBI Bank, valued at around Rs 36,000 crore at current market prices. In addition, Life Insurance Corporation of India (LIC) will sell a 30.24% stake, taking the total stake on offer to 60.72%, with an estimated combined valuation of nearly Rs 72,000 crore.
Notably Emirates NBD announced its intention to acquire up to a 60% stake in RBL Bank for around $3 billion (about Rs 27,000 crore). In light of this transaction, market observers say Emirates NBD is no longer viewed as a likely contender for IDBI Bank.
As far as disinvestment proceeds are concerned, the Centre has not set a separate target for disinvestment. Proceeds from stake sales are now accounted for under the broader category of “miscellaneous capital receipts.” In the current fiscal, disinvestment proceeds have amounted to just Rs 8,768 crore.
