The financial bids for the strategic sale of IDBI Bank are expected to be submitted by March 2025. However, the finalization of the transaction may extend into the next financial year, according to sources.
The government plans to sell a 60.72% stake in IDBI Bank, including 30.48% (₹21,690 crore at current prices) from the government and 30.24% from LIC, along with management control. Bidders include Fairfax India Holdings, Emirates NBD, and Kotak Mahindra Bank.
The Reserve Bank of India (RBI) issued the ‘fit and proper’ certification to shortlisted bidders in December. The due diligence process began late due to holiday leaves. Bidders now have access to IDBI Bank’s data room to assess financial information and address questions. The next step is finalizing the Share Purchase Agreement (SPA) with regulatory approvals.
If a bank wins the bid, it must comply with RBI norms, allowing promoters to hold only one banking license. Sufficient time will be given for this process.
IDBI Bank has shown financial improvement, exiting the RBI’s Prompt Corrective Action (PCA) framework in March 2021. It has consistently reported profits:
- FY21: ₹1,359 crore
- FY22: ₹2,439 crore
- FY23: ₹3,645 crore
- FY24: ₹5,634 crore
The government may miss its ₹50,000 crore disinvestment target for this financial year. However, strong dividends from the RBI and central public sector enterprises (CPSEs) have boosted non-tax revenues and ensured financial stability.
