IDBI Bank Privatisation to be Completed in 2025, Says DFS Secretary M. Nagaraju

There is a big news related to Privatisation of IDBI Bank. The DFS Secretary has said that the IDBI Bank will be privatised by the end of this year.

The Secretary of the Department of Financial Services, M. Nagaraju, announced on May 5 that the sale of a stake in IDBI Bank will be completed in 2025.

Speaking at the listing ceremony for the first Residential Mortgage-backed Securities, Nagaraju stated that the stake sale would be finished within this calendar year. This marks a crucial development in the ongoing privatization process of IDBI Bank.

The Central Government and the Life Insurance Corporation of India (LIC) plan to jointly sell a total of 61% of IDBI Bank’s shares. This includes 30.48% owned by the government and 30.24% held by LIC. These shares will be sold to private buyers as part of the government’s efforts to privatize the bank. Also Read: Who is responsible for downfall of IDBI Bank?

The sale process began in January 2023 when the government received multiple expressions of interest (EoIs) for the 60.72% stake in the bank. The shortlisted bidders are currently going through the due diligence process, where they examine the bank’s financial details and other important information.

Earlier in April 2023, Arunish Chawla, the Secretary of the Department of Investment and Public Asset Management (DIPAM), shared an update on the progress of the IDBI Bank stake sale. He mentioned that key steps, such as granting access to a data room and carrying out asset valuations, are underway to ensure the sale proceeds smoothly.

The IDBI Bank sale is part of the government’s broader disinvestment plan. For the financial year 2025-26, the government has set an ambitious target of raising Rs 47,000 crore through disinvestment and asset monetization. The IDBI Bank transaction is expected to play a key role in helping the government meet this target, alongside other planned sales of public sector assets. Also Read: Who is responsible for downfall of IDBI Bank?

This stake sale is a major part of the government’s plan to reduce its holdings in public sector companies and boost its finances. It’s expected to attract significant attention from investors and play a crucial role in the future of IDBI Bank.

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