Government Panel to Meet Today to Finalize Key Steps in IDBI Bank’s Privatisation
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A big step may be taken today for privatisation of IDBI Bank. An important government meeting is scheduled for July 7, where a high-level inter-ministerial group (IMG) will review the remaining formalities related to the strategic sale of IDBI Bank. A major focus of the meeting will be to discuss and finalize the Share Purchase Agreement (SPA) — the legal document that will outline the terms and conditions of the sale.
What Is This Meeting About?
According to government sources, the meeting will be co-chaired by Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), and M Nagaraju, Secretary of the Department of Financial Services.
The main agenda of the meeting is to clear the last remaining issues before inviting final bids from potential buyers. Finalizing the SPA is seen as a critical step before the bidding process can move forward.
“The government wants to finalize the SPA as soon as possible. It must be approved by the IMG before the sale process can go ahead,” said a senior official familiar with the matter.
What’s the Current Status of the Sale?
The Central Government and LIC (Life Insurance Corporation of India) currently hold 94.72% of IDBI Bank. Together, they are planning to sell a 60.72% stake in the bank to private investors as part of the strategic disinvestment process.
This sale is an important part of the government’s broader asset monetisation and disinvestment strategy aimed at raising ₹50,000 crore in the financial year 2025–26.
Sources say that most of the technical and legal issues in the sale process have already been addressed. The July 7 IMG meeting is expected to resolve the remaining matters, paving the way for the next phase.
- Shortlisted bidders, including companies from both India and abroad, have already been given access to the data room to carry out due diligence.
- Once the SPA is finalized and approved, the government is expected to invite financial bids from these shortlisted suitors.
If all goes as planned, the strategic sale of IDBI Bank could be completed by the end of this financial year.
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