IDBI Bank divestment likely to close this FY: Dipam Secy Arunish Chawla

Dipam Secretary Arunish Chawla said IDBI Bank privatisation should conclude by March 2026 as bidders complete due diligence, with FY26 disinvestment proceeds set to exceed targets

The government expects to complete the “core part” of IDBI Bank Ltd.’s privatisation by March 31, 2026, Department of Investment and Public Asset Management (Dipam) Secretary, Arunish Chawla, said on Thursday. Qualified bidders have begun due diligence and will finish the exercise by September, he added.

 

“The expression of interest process has been completed. The parties which cleared all the technical parameters and are qualified are undertaking the due diligence exercise. All the required documents have been made available to them. We hope to complete the basics with the core part of the process by the end of the current financial year,” said Chawla. 

The centre and Life Insurance Corporation of India together hold 95 per cent stake in IDBI, of which 60.72 per cent is on the block. This could fetch the government Rs 64,000 crore at current market rate.

 

The development sent the lender’s shares soaring 9 per cent to end at Rs 98 apiece.

 

Chawla reiterated that FY26 proceeds should comfortably exceed the budget target of Rs 47,000 crore. Already, Rs 22,000 crore has been mopped up in the first quarter through the OFS in Mazagon Dock and Infrastructure Investment Trust (InvIT) monetisations.

 

On public-sector enterprises (PSU) with thin floats, Chawla said the government will first trim its stake to 90 per cent in companies where it owns more than that level, and then to 75 per cent where the holding is between 75 per cent and 90 per cent. The government is engaged in talks with investment bankers, he said.

 

Chawla indicated that an additional stake sale in LIC—where public float is only 3.5 per cent—could be launched “when conditions are right”. A pipeline of follow-on offers and an OFS is also being readied.

 

To bolster boards at PSUs, about 200 independent directors have recently been appointed, he said.