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Government Eyes IDBI Bank Stake Sale Again
29 May
Summary
- Centre seeks revival for stalled IDBI Bank privatisation.
- Earlier rejected bids are being re-examined for consideration.
- Sale aims to raise Rs 24,000 crore for government revenue.
The Indian government is actively exploring avenues to revive the stalled privatisation process of IDBI Bank. This initiative involves re-evaluating earlier bids that had fallen short of the reserve price, including those from Fairfax Financial Holdings and Emirates NBD. Officials are examining legal frameworks to potentially accept these bids, aiming to secure non-tax revenues.
The stake sale process was halted in March after financial bids were found to be below the undisclosed reserve price. However, the government maintains that the process was never officially scrapped, and new options are being considered for its completion within the ongoing round. The Department of Investment and Public Affairs (DIPAM) had previously confirmed the receipt of financial bids in February 2026.
The government plans to sell its 30.48% stake alongside Life Insurance Corporation of India's 30.24% holding. At current market prices, this could generate approximately Rs 24,000 crore, contributing to the fiscal year's asset monetisation target of Rs 80,000 crore. Successful bidders will require final assessment by the Reserve Bank of India and other regulatory approvals.
