Due diligence of IDBI Bank's qualified bidders underway: MoS Finance

The due diligence of qualified bidders for IDBI Bank, which is up for privatisation, is underway, Minister of State for Finance Pankaj Chaudhary said on Monday.

The government, along with LIC, is selling nearly 61 per cent stake in IDBI Bank. This includes a 30.48 per cent stake of the Government of India and 30.24 per cent of LIC.

In January 2023, the Department of Investment and Public Asset Management (DIPAM) received multiple Expressions of Interest (EoI) for buying stake in IDBI Bank.

"After security clearance by Ministry of Home Affairs (MHA) and fit and proper evaluation by the Reserve Bank of India (RBI), the due diligence by the qualified bidders is being done," Chaudhary said in a written reply in the Lok Sabha.

After the required clearances, investors would get access to the data room and a due diligence process will be initiated.

At present, the government holds 45.48 per cent in IDBI Bank, while LIC's shareholding is 49.24 per cent.

To a question on whether the government has any plans to discuss the implications of the proposed privatisation with IDBI employees, Chaudhary said while deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement.