The privatisation of IDBI Bank is expected to be finalised by March, according to reports citing government officials. The central government has set a target to complete the IDBI Bank disinvestment process by the first half of the next financial year. To move forward with the sale, the government is preparing to invite financial bids soon.
Progress in the Disinvestment Process
A report by Business Today TV stated that the government has resolved all data room-related issues concerning IDBI Bank’s privatisation. This has cleared the way for the next stage of the transaction. A senior government official confirmed, “The IDBI Bank privatisation process is progressing smoothly. All data room issues have been addressed, and financial bids will be invited shortly.”
The due diligence process, which allowed potential bidders to review the bank’s financial data, was a crucial step in assessing the valuation and finalising bid amounts. Officials mentioned that there were some queries from interested bidders regarding the data room, but those concerns have now been resolved.
A Long-Duration Privatisation Process
The process of privatising IDBI Bank began in January 2023 when the government issued an Expression of Interest (EOI). The Centre and Life Insurance Corporation of India (LIC) together plan to sell a 61% stake in the bank. This includes 30.48% held by the government and 30.24% held by LIC.
The government has set a target of raising ₹47,000 crore from disinvestment and asset monetisation in the Union Budget 2025-26. However, no specific amount has been earmarked for IDBI Bank’s sale.
With all data-related concerns now resolved, the IDBI Bank disinvestment process is moving closer to completion. The next key step will be the submission of financial bids, which will determine the new ownership of the bank.
