IDBI Bank Stake Sale Progresses Swiftly, Expected to Conclude in FY 2025-26: FM Sitharaman

Finance Minister Nirmala Sitharaman announced that the strategic divestment of IDBI Bank is advancing rapidly and is anticipated to be finalized within the current financial year, 2025-26. In an exclusive conversation with Network18 Group Editor-in-Chief Rahul Joshi, Sitharaman stated, “The IDBI disinvestment is progressing at a good pace, and I expect it to wrap up this financial year.” On the possibility of future stake sales, she added, “I’m not ruling out anything. Yes, more disinvestments are on the horizon.”

In August, DIPAM Secretary Arunish Chawla provided an update, noting that qualified bidders have nearly completed their due diligence for the IDBI Bank stake sale. Speaking to CNBC-TV18, Chawla said, “The Expression of Interest (EoI) phase is fully completed. Qualified bidders have undergone a preliminary fit and proper evaluation by the RBI and are now conducting due diligence with access to the data room. We are in the final stages of this process and aim to move to the Request for Proposal (RFP) stage, targeting completion by the end of this financial year.”

The government, along with the Life Insurance Corporation of India (LIC), holds approximately 95% of IDBI Bank’s shares, with 60.72% designated for sale under the ongoing disinvestment initiative. The government has already achieved Rs 20,000 crore in divestments during Q1 FY26, against a full-year target of Rs 47,000 crore. The IDBI Bank stake sale, despite previous delays, is a critical component of the government’s broader disinvestment strategy.