The government is going to complete the process of disinvestment i.e. stake sale in IDBI Bank in this financial year. Sources have told Moneycontrol that Kotak Mahindra Bank, Emirates NBD and Fairfax India Holdings are scheduled to submit their final bids to buy 61 percent stake in IDBI Bank this week. At present the Central Government holds 45.48 percent stake in IDBI Bank and Life Insurance Corporation of India (LIC) holds 49.24 percent stake. Sources close to the matter say that one bid has been sent, and the remaining bids are expected before the weekend.
The bids will be given to the Department of Investment and Public Asset Management (DIPAM) in the Finance Ministry. The government is selling its 30.48 percent stake in IDBI Bank. Officials say that the government is expected to get revenue of about Rs 33,000 crore from this. LIC is selling 30.24 percent stake in the bank.
Earlier in late January, it was reported that the three short-listed bidders – Kotak Mahindra Bank, Emirates NBD and Fairfax India Holdings – have been asked to submit final bids by February 5. This bidding is to buy 61 percent stake in IDBI Bank.
What is the process after submission of bids?
Sources say that after the financial bids are submitted, the bids will be opened in the presence of transaction advisors, members of the Inter-Ministerial Group (IMG) and authorized representatives of the bidders. After selection, the proposal will go to IMG for its recommendation, after which approval will be received from the Finance Minister. A senior official says that the entire process will be completed in the financial year 2026. The IMG consists of the secretaries of the Department of Investment and Public Asset Management (DIPAM) and the Department of Financial Services (DFS).
Speaking after the presentation of Budget 2026 on February 1, DIPAM Secretary Arunish Chawla had said that the strategic disinvestment of IDBI Bank has moved into the third phase. This means that technical and financial bids have been invited. Chawla had said, “Before the end of the current financial year, we will be able to give more information in this matter.”
The proposal for stake sale first came in February 2020.
The proposal for sale of government stake in IDBI Bank first came in February 2020, when the Finance Minister presented the budget for FY 2021. But the Request for Proposal (RFP) was sent in October 2022. It is being said that Reserve Bank of India has approved 4 interested bidders from ‘fit and proper’ perspective. These 4 bidders are – Kotak Mahindra Bank, Fairfax India Holdings, Emirates NBD and Oaktree Capital.
IDBI Bank shares are rising on 6th February. The stock rose as much as 4.4 per cent during the day to a high of Rs 107.50 on BSE. The market cap of the bank has reached Rs 1.14 lakh crore. The stock has increased 32 percent in a year.