IDBI Bank’s Privatisation Plot Twist: Government Eyes October Curtain Call

Image Source: The Indian Wire

The government of India is fast-tracking the sealing of the strategic sale of its majority stake in IDBI Bank by October, senior officials indicated. It is one of the major features of India's overall divestment plan to mop up ₹40,000-₹50,000 crore and introduce a new strategic investor in the lender.

Key Highlights:

The Centre and LIC own 95% of the shares of IDBI Bank, of which 60.72% will be on sale in this round.
The Share Purchase Agreement (SPA) is being examined by the government committee, an important step before inviting financial offers from shortlisted buyers.
The financial terms are to be secured up to September, and the transaction is to be concluded up to October, pending final approvals by all parties concerned.
IDBI Bank's financials are robust, with a 26% quarter-on-quarter rise in Q4FY25 net profit and improving asset quality parameters.
The deal will help the government to meet its FY26 fiscal goals and is a shift in asset monetization strategy, with no particular disinvestment goal being outlined in the Union Budget 2025.
The process, which was stalled several times during the last three years, is currently at the final stage, which reflects fresh thrust towards India's privatisation programme.

Source: Financial Express, Moneycontrol