As per the sources, the government may complete the privatisation of IDBI Bank in the next financial year, with plans to invite financial bids for the transaction by next month.
A source from the government stated, “The disinvestment of IDBI Bank is on track. We expect it to be completed by the middle of this year. Financial bids will be called by the end of March.”
Currently, the due diligence process by potential bidders is underway. The bidders are now being granted access to the bank’s confidential data to evaluate its financial status, which will help them determine the bank’s valuation and prepare their financial bids.
The Reserve Bank of India (RBI) has already finished its fit-and-proper assessment of the bidders, ensuring that they meet the necessary criteria to proceed with the deal.
This privatisation will be a significant event, with the source highlighting that it will be the largest privatisation exercise since Air India’s disinvestment.
As part of the privatisation process, the government and Life Insurance Corporation (LIC) will jointly sell a 61% stake in IDBI Bank, which includes a 30.48% stake held by the government and a 30.24% stake held by LIC. Along with this, the management control of the bank will also be transferred.
The process of privatising IDBI Bank began in January 2023 when the Centre issued an Expression of Interest. Since then, the transaction has moved through various stages, with the final step being the financial bidding process.
Although officials are not revealing the expected returns from the stake sale, the Union Budget for 2025-26 has projected raising Rs 47,000 crore through disinvestment and asset monetisation. However, no specific figure has been set aside for the sale of IDBI Bank.
In its third-quarter results, IDBI Bank reported a 31% rise in net profit, reaching Rs 1,908 crore, compared to Rs 1,458 crore during the same period last year.
