Mumbai: In its latest divestment move, the government is in the last stage of choosing the appropriate bidder for IDBI Bank. Currently, the Central Government and the LIC hold more than 90% of the PSU, and aim to sell 60.72% of their stake, with LIC offloading 30.24% and the Government selling 30.48% in the bank.
Canada-based Fairfax Financial Holdings and Dubai-based Emirates NBD remain the bidders for the divestment, with reports suggesting Fairfax has a lead. The government had earlier rejected both the bids as they did not meet the minimum threshold expected. Both suitors then submitted higher bids, and a final decision is expected within a month.
The stake sale is expected to fetch the government between ₹50,000 to ₹55,000 crore. For now, all eyes are on the bank’s upcoming Annual General Meeting (AGM) scheduled for July 21.
Following the news, IDBI Bank’s shares have jumped almost 4% on the NSE, rising almost 13% in the past month. The LIC-controlled bank had reported a 5% decline in its net profit to ₹1,943 crore for Q4 FY26, as against a net profit of ₹2051 crore during the same period last year.
The stake sale will mark the largest government-backed disposal of a majority stake in a domestic bank. The transaction could re-rate the entire mid-tier banking sector, proving the viability of large-scale bank privatization in India.
