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New Delhi: The process of privatisation of IDBI Bank has now reached a decisive juncture. The central government has invited financial bids to sell its stake in the bank. The process that has been stuck for a long time is now speeding up. According to government sources, all necessary regulatory and security clearances have been completed. The government can announce the name of the successful bidder by March 2026. This deal is believed to be one of the biggest disinvestment deals in the Indian banking sector.
Under the proposed disinvestment scheme, the central government will keep its 30.48 percent stake in IDBI Bank for sale. Based on the current market price, its price is estimated at around Rs 36000 crore. Along with this, the Life Insurance Corporation (LIC) will also sell its 30.24 percent stake in the bank. In this way, 60.72 percent of the total stake will be on sale. The total value of both stakeholders is estimated to be around Rs 72,000 crore.
IDBI Bank is considered to be the race of some big and strong investors. Fairfax Financial, whose head is Prem Vatsa, is one of the main contenders for this deal. Besides this, Kotak Mahindra Bank, a big private sector bank, is also believed to be ahead in this race. According to sources, both of them have shown serious interest in the deal. However, the final decision will be made on the basis of the financial bid and terms.
Emirates NBD has recently announced its intention to buy a large stake in RBL Bank. The value of this deal is said to be around Rs 27000 crore. Market experts believe that after this big deal it may be difficult for Emirates NBD to invest in IDBI Bank. It is not considered practical to engage in two big bank deals simultaneously. This is why Emirates NBD is now being considered out of this race.
The process of disinvestment of IDBI Bank started on 7 January 2023. At that time, the Investment and Public Property Management Department had received interest letters from many potential investors. After this, the matter went through the stages of investigation and regulatory clearances. The process took time but now it has reached the final stage. Getting a financial bid invite is considered a big step in this direction.
The central government has not set any specific target related to disinvestment. Now the income from the sale of stake is added to other capital receipts. So far in the current financial year, the government has received about Rs 8768 million from disinvestment. This figure may increase significantly once this deal of IDBI Bank is completed. Therefore, this deal is considered important for the government both financially and strategically.
