IDBI Bank's Privatisation Is Going According To Strategic Selling Process: DIPAM

The government said on Friday that the disinvestment of IDBI Bank is proceeding according to the defined strategic sale procedure.

The Department of Investment and Public Asset Management (DIPAM) denied media rumours that the IDBI Bank disinvestment could be delayed, stating that the stake sale is in the post-EoI stage.

“The transaction remains on track as defined in the post-EoI stage following the receipt of multiple EoIs,” DIPAM Secretary Tuhin Kanta Pandey tweeted.

The government and the LIC are selling a combined 61 per cent stake in IDBI Bank and received numerous Expressions of Interest (EoIs) in January.

DIPAM, which handles the government's stake in state-owned enterprises, invited expressions of interest in October last year to sell a 30.48 per cent stake in IDBI Bank, along with LIC's 30.24 per cent stake in the bank.

The government and LIC own 94.72 per cent of IDBI Bank, which will be reduced to 34 per cent after the strategic selling.

The government and the RBI are currently reviewing the bids submitted. For bidders to proceed to the second step of the bidding process, due diligence and following the invitation of financial bids, security clearance from the government and Fit and Proper clearance from the RBI would be required.

Investors who have filed an EoI have already provided the necessary information to ensure fit and proper as well as security clearance.

Officials anticipate that the deal will be completed in the second half of the next fiscal year, which begins in April 2023.

According to the agreement, the government will own 15 per cent of IDBI Bank and LIC will own 19 per cent, bringing their overall stake to 34 per cent.