Government to Invite Financial Bids for IDBI Bank Stake Sale by December

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The Indian government is set to invite financial bids for the strategic disinvestment of its stake in IDBI Bank between October and December this year, according to Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM). The process is expected to culminate in the announcement of the winning bidder by the end of the current fiscal year, March 2026.

Chawla confirmed that due diligence has been completed, and the next stage of the transaction will involve financial bidding. All eligible bidders have been given access to the virtual data room, and consultations with interested parties have concluded.

The government, along with the Life Insurance Corporation of India (LIC), currently holds over 94 percent of IDBI Bank. Of this, they plan to sell a 60.72 percent stake. The disinvestment is a part of the Centre’s broader strategy to privatise select public sector banks, as announced earlier.

In a previous update, DIPAM had disclosed that financial bids would be invited in the third quarter of the current fiscal year. The aim is to complete the transaction by the end of the financial year, providing sufficient time for evaluation and regulatory approvals.

Potential bidders reported in earlier media include Fairfax India Holdings, Emirates NBD, and Kotak Mahindra Bank. The sale has attracted interest from both domestic and international investors, highlighting the strategic value of the bank.

The IDBI Bank stake sale is one of the largest proposed divestments in the banking sector. The government anticipates that the transaction will bring efficiency, innovation, and capital into the sector, supporting the long-term growth of IDBI Bank.