The Central Government held high-level meetings on July 13 to review the proposed sale of IDBI Bank. The discussions focused on the progress of the disinvestment process. Reports say Fairfax India has submitted a revised bid after the government carried out a fresh valuation of the bank. The Government and LIC plan to sell a combined 60.72% stake in IDBI Bank, along with management control, to the successful buyer.
The Central Government held a series of high-level meetings on July 13 to review the progress of the proposed sale of IDBI Bank. According to government sources, the meetings were held to discuss important issues related to the strategic disinvestment of the bank.
Two CGD Meetings Held
Government sources said that the Core Group of Secretaries on Disinvestment (CGD) held two separate meetings on the same day. These meetings focused on matters related to the government’s plan to sell its stake in IDBI Bank. The discussions were aimed at reviewing the current status of the disinvestment process.
Inter-Ministerial Group Also Met
An Inter-Ministerial Group (IMG) meeting was also held on July 13 to review the strategic disinvestment of IDBI Bank. The meeting was jointly chaired by Sanjay Lohiya, Secretary of the Department of Financial Services (DFS), and Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM).
Revised Bid Reportedly Submitted
The meetings were held at a time when reports suggested that Fairfax India Holdings, led by Canadian billionaire Prem Watsa, has submitted a revised bid for IDBI Bank. Earlier this year, the sale process had slowed down because the bids received from shortlisted buyers, including Fairfax and Emirates NBD, were reportedly lower than the government’s expected price. As a result, the government paused the process and carried out a fresh valuation of the bank.
Government and LIC Plan to Sell Majority Stake
The Government of India and Life Insurance Corporation of India (LIC) together own nearly 95% of IDBI Bank. They plan to sell a combined 60.72% stake in the bank along with management control. Under the proposal, the Central Government will sell a 30.48% stake, while LIC will sell a 30.24% stake. This sale is expected to transfer management control of the bank to the successful buyer.
