Government Sets Timeline for IDBI Bank Stake Sale

With the due diligence process for the sale of the government's stake in IDBI Bank now complete, the Centre is poised to invite financial bids in the December quarter. The goal is to shortlist the final bidder by the end of the financial year, according to a top official.

Stake Sale Details and Interested Parties

The government holds a 45.5% stake in IDBI Bank, with state-run LIC owning 49.2%. The proposed transaction involves selling a 60.7% stake in the bank, which has relied on repeated government bailouts over the last two decades. Entities such as Fairfax and Emirates NBD, which recently received regulatory approval to establish a local subsidiary in India, are among those interested in acquiring the government and LIC's shares.

Regulatory Approvals and Next Steps

Once bids are submitted, they will undergo evaluation by the government. The shortlisted top bidder will then require approval from the RBI before the Centre can proceed with the sale. Additional regulatory approvals will also be necessary to finalize the transaction.

LIC Stake Sale Plans

Regarding the government's plan to sell stake in LIC through an offer-for-sale, no specific transaction details were disclosed. However, merchant bankers and legal advisers have been appointed for a three-year term to guide the Centre on stake sales in public financial institutions, including banks.