IDBI Bank Privatisation to be completed by 31 March

Secretary of the Department of Investment and Public Asset Management (DIPAM), Arunish Chawla has said that – The government has set a clear timeline for completing the privatisation of IDBI Bank. The core part of the process is expected to be completed by March 31, 2026.

He said that the expression of interest (EoI) process has already been completed, and all qualified bidders—those who met the technical criteria—are now conducting due diligence. They have been given full access to the required documents and are expected to finish this stage by September 2025.

Currently, the Centre and Life Insurance Corporation of India (LIC) together hold 95% stake in IDBI Bank, of which 60.72% stake is being put on sale. At the current market value, this could fetch nearly ₹64,000 crore for the exchequer.

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

Chawla also reaffirmed that the government’s disinvestment target of ₹47,000 crore for FY26 would be comfortably exceeded. In fact, ₹22,000 crore has already been raised in the first quarter through Mazagon Dock’s Offer for Sale (OFS) and monetisation of Infrastructure Investment Trusts (InvITs).

On 11 August 2025, employees of IDBI Bank across India went on a one-day strike to protest against the privatisation of the bank. The protest was organised under the banner of the United Forum of IDBI Officers and Employees, which includes the All India IDBI Officers Association (AIIDBIOA) and the All India Industrial Development Bank Employees Association (AIIDBEA).

Click here to read about strike in IDBI Bank

Stake Sale in Other PSUs

On the broader PSU stake sale strategy, Chawla said the government will gradually reduce its holdings: Government will first reduce stake down to 90% in firms where it holds more than that, and then lower it further to 75% where the holding is between 75–90%. Discussions are underway with investment bankers to execute this plan.

On LIC, Chawla indicated that an additional stake sale could be considered once market conditions are favourable. A pipeline of follow-on public offers (FPOs) and OFSs is also being prepared.

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