The government has received bids for the strategic disinvestment of IDBI Bank, Divestment Secretary Arunish Chawla announced on X, adding that the proposals will now be reviewed in accordance with the prescribed procedure.
As part of the privatisation plan, the government intends to sell its 30.48% stake in the bank, alongside Life Insurance Corporation of India’s (LIC) 30.24% holding, taking the total stake on offer to 60.72%. The Centre had first invited expressions of interest in October 2022, but the process faced delays after potential buyers struggled to secure the Reserve Bank of India’s “fit and proper” approval. The regulatory hurdle was cleared in the latter half of 2025, paving the way for fresh momentum in the sale.
Reports indicate that Kotak Mahindra Bank has emerged as a leading contender for the acquisition, while other interested parties include Emirates NBD, Fairfax Financial, and Canada-based Oaktree Capital Management.
Following the proposed transaction, the government’s stake in IDBI Bank is expected to reduce to 15%, while LIC’s shareholding would decline to about 19%. If completed, the deal would mark only the second major strategic disinvestment by the government after the sale of Air India.
.jpg)
Officials are keen to finalise the sale within the current financial year to capitalise on strong market valuations. Since the initial bid process began, IDBI Bank’s share price has more than doubled, closing at Rs 106.86 on Friday, up 3.8% from the previous session.
At current prices, the government could raise over Rs 350 billion from its stake sale, while LIC may receive approximately Rs 347 billion, making the transaction larger than the entire miscellaneous capital receipts target for FY26. However, a senior finance ministry official indicated the deal is more likely to conclude in FY27, aligning with the government’s ambitious Rs 800 billion receipts target for that year.
