Idbi bank is going to be sold lic and the government hold 61 percent stake

Idbi bank disinvestment: There is going to be a big change in the Indian banking sector, the government and the Life Insurance Corporation of India (LIC) are preparing to sell their 61 percent stake in IDBI Bank. This process of privatization started from January 2023 when different investors showed interest to buy a stake in the bank.

The process is being completed rapidly

This month, the government is going to finalize the share purchase agreement for the Privacy of IDBI Bank. A senior official told CNBC-TV18 that the deal is expected to be completed in the first half of FY26, and soon financial bids will be installed.

Arunish Chawla, secretary of the Department of Investment and Public Asset Management (DIPAM), in an interview to CNBC, confirmed that the disinvestment process is on the correct track. Although the exact timeline of privatization has not been decided yet, but the government has reiterated that the process is moving forward according to the plan.

30.48 percent of the government and 30.24 percent stake of LIC will be sold in this deal. Also, transfer of management control of the bank will also be included. The Dipam Secretary said that LIC will also sell its stake in IDBI Bank under the Protection Plan.

Solution of concerns related to data room

According to a report by Business Today, the government has removed all the concerns related to the data room in the disinvestment process of IDBI Bank. This has cleared the way for the next phase of the deal to start. A senior government official said, “The procedure for privateness of IDBI Bank is moving smoothly. All the issues related to the data room have been resolved, and financial bids will be invited soon.”

The DUE DILIGENCE process, in which potential bidders were accessible to the bank’s financial data, had an important step in fixing valuations and bids. According to the report, the resolve of the concerns related to the data room indicates that the deal is moving towards its final stage. The official said, “There was no major interruption, there were just questions related to some data room, which have now been resolved.”

Long -running process

The procedure for the private privateness of IDBI Bank started in January 2023, when the government released the Expression of Interest. The government and LIC together will sell 61 per cent stake in IDBI Bank, including 30.48 per cent of the government and 30.24 per cent of LIC.

At the same time, the Union Budget of 2025-26 has set a target of raising Rs 47,000 crore from disinvestment and asset montage, although no special allocation has been made for IDBI Bank.

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