The Indian government has initiated preparations to sell its entire stake in another public sector bank. Several proposals have already been received regarding this move, and it is expected that the disinvestment process will be completed by the end of 2025, leading to the full privatization of the bank. Currently, the government owns around 30% of the bank’s shares, while state-run insurance giant LIC holds a similar stake. Both entities are aiming for a complete exit.
M. Nagaraju, Secretary of the Department of Financial Services, stated that the government intends to offload its entire stake in IDBI Bank by the end of 2025. He confirmed that the disinvestment process will be completed within this year, transferring full ownership of the bank to private players. At present, the central government holds 30.48% of the bank, while LIC owns 30.24%, making a combined total of nearly 61% stake.
According to the secretary, the groundwork for the disinvestment of IDBI Bank began back in January 2023. Since then, the government has received several expressions of interest, and the screening of potential bidders is currently underway. On April 9, Arunish Chawla, Secretary of DIPAM (Department of Investment and Public Asset Management), mentioned that the sale process, including valuation and regulatory clearances, is ongoing.
For the financial year 2025-26, the central government has set a disinvestment target of approximately ₹47,000 crore. The sale of IDBI Bank is expected to play a significant role in achieving this goal. If successful, the government could earn several thousand crores through this strategic sale. To support the disinvestment process, the government has also launched a monetization scheme, under which it is selling stakes in loss-making public sector enterprises.
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