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IDBI Bank Privatisation Latest News: The government has taken another major step towards the disinvestment of IDBI Bank. According to sources, financial
bids have now been invited from interested bidders to take over the bank’s operations. The bids have been invited by the Department of Investment and Public Asset Management (DIPAM), which manages the Centre’s equity investments, after receiving approval from the Ministry of Finance. Sources said that DIPAM has held several rounds of meetings with prospective bidders as part of the disinvestment process. The bidders have been given one month to submit their financial bids.
IDBI Bank Divestment Completion Date
Sources also told ET NOW that the government is targeting completion of the transaction by the end of the current financial year, by March 2026.
Sources said that the winning bidder will be required to merge its existing banking entities with IDBI Bank. Notably, the Reserve Bank of India (RBI) has made it clear that only one of the entities can survive after the disinvestment.
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The development marks an important step in the long-pending privatisation of IDBI Bank in which the government and LIC jointly own 95 per cent stake. A total of 60.72 per cent stake is earmarked for the sale under the ongoing disinvestment programme.
IDBI Bank Bidders
Earlier, ET NOW had reported that Canada's Fairfax Financial, which owns CSB Bank, and Kotak Mahindra Bank are only major contender in the race to acquire IDBI Bank. Fairfax Financial is said to be considering an all-cash offer in line with IDBI Bank’s current market value.
IDBI Bank Shareholding: LIC, Govt Stake
IDBI Bank became a subsidiary of LIC with effect from January 21, 2019, after the acquisition of an additional 82,75,90,885 equity shares. Later in December 2020, IDBI Bank was reclassified as an associate company due to the reduction of LIC shareholding to 49.24 per cent, following the issuance of additional equity shares by the bank under a qualified institutional placement (QIP).
Meanwhile, IDBI Bank in Q3 FY2026 reported almost flat profit at Rs 1,935 crore. The bank had reported a net profit of Rs 1,908 crore in the year-ago period. The bank's total income in Q3 declined to Rs 8,282 crore from Rs 8,565 crore in the same period last year. IDBI Bank's interest income stood at Rs Rs 7,074 crore in the quarter.
IDBI Bank was established in 1964 and transformed into a commercial bank in 2004.
