IDBI Bank Divestment to be completed by FY26: FM Sitharaman

There is a big news related to divestment of government stake in IDBI Bank. Finance Minister Nirmala Sitharaman on September 5 confirmed that the strategic divestment of IDBI Bank is progressing quickly and is expected to be completed within the current financial year 2026.

In an interview with Network 18 Group Editor-in-Chief Rahul Joshi, she also hinted that the government could look at more such stake sales in the future, saying, “I am not negating anything. More disinvestments.”

In August, DIPAM Secretary Arunish Chawla had shared that qualified bidders had almost finished the due diligence process, which involves carefully examining all the financial and legal details before making a final offer.

He said that the Expression of Interest (EoI) stage had been completed, and the Reserve Bank of India (RBI) had provisionally cleared the bidders as “fit and proper.” The process is now moving toward the Request for Proposal (RFP) stage, which is expected to wrap up by the end of this financial year.

As part of the divestment, both the government and LIC, who together hold about 95% of IDBI Bank, are planning to sell a majority portion. Specifically, 60.72% of their combined stake is marked for sale. This step is a major part of the government’s disinvestment strategy, which aims to reduce its holdings in certain public enterprises and bring in private investment.

The Finance Ministry has set a target of Divestment of Rs.47,000 crore for the year. Out of this, ₹20,000 crore worth of divestment has been achieved in the first quarter of FY26. The IDBI Bank sale, which has faced delays in the past, is now seen as a key milestone in achieving this goal and is expected to boost confidence in India’s broader privatisation programme.

Also Read: Who is Responsible for the Downfall of IDBI Bank?