The government is pushing ahead with the strategic disinvestment of IDBI Bank, according to reports from ET NOW citing official sources. The process is entering a crucial phase, with due diligence set to begin for potential bidders in November. Financial bids for the sale of IDBI Bank are expected to be submitted by the fourth quarter of FY25.
The government along with LIC is selling a nearly 61 per cent stake in IDBI Bank. This includes a 30.48 per cent stake of the Government of India and 30.24 per cent of LIC. The government and LIC together hold a 94.72 per cent stake in IDBI Bank, which will come down to 34 per cent after the strategic sale.
In preparation for the sale, interested bidders will soon gain access to IDBI Bank’s data room within the next 15 days. These bidders have already received security clearance from the Home Ministry, a key step in ensuring only qualified entities can move forward in the bidding process. The government is also working on finalizing the draft of the Share Purchase Agreement, which will outline the terms and conditions of the sale.
The Reserve Bank of India (RBI) has granted ‘fit and proper’ approval to IDBI Bank, confirming that the bank meets the necessary standards for ownership changes. Additionally, regulators will provide ample time for bidders to comply with RBI rules, including the requirement that a promoter can hold only one bank license.
The government had earlier received multiple Expressions of Interest (EOI) for a combined 60.72% stake in IDBI Bank. This significant sale is part of the government’s broader disinvestment strategy, aimed at reducing its stake in public sector banks and encouraging private sector participation.
This move marks an important step in the ongoing efforts to privatize IDBI Bank, with the government and regulators ensuring that all procedures are followed to complete the sale smoothly.
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