 "Financial bidding for IDBI Bank expected to conclude by October 2025")
The financial bidding for IDBI Bank is expected to conclude by October 2025, a senior government official said, requesting anonymity.
“All things are progressing at a high pace and the IDBI Bank sale will be completed by October 2025,” the official said.
An inter-ministerial group (IMG) met on July 7 to discuss remaining issues tied to the strategic sale, including the finalisation of the share purchase agreement (SPA) that will govern the transaction, according to the source.
The meeting was co-chaired by Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla and Financial Services Secretary M Nagaraju, the person said, adding that the Department of Financial Services is set to complete the LIC offer for sale (OFS) shortly. ALSO READ: Banks expect RBI to double VRRR auction as liquidity stays surplus
In addition, public sector banks are expected to raise ₹40,000 crore to ₹45,000 crore via qualified institutional placements (QIPs) in FY26. “This year, stakes will be sold through OFS in Punjab & Sind Bank, Bank of Maharashtra, Indian Overseas Bank (IOB), and Central Bank,” the official said.
The source further added that banks may receive an extension on meeting minimum public shareholding norms until 2027.
As of February 24, 2025, two PSBs -- Bank of Maharashtra (₹3,500 crore) and Punjab National Bank (₹5,000 crore) — had raised a total of ₹8,500 crore in FY25. In FY24, five PSBs raised ₹17,500 crore via QIPs: Bank of India (₹4,500 crore), Bank of Maharashtra (₹1,000 crore), Indian Bank (₹4,000 crore), and Union Bank of India (₹8,000 crore), according to data from Prime Database.
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