Govt plans to float EoI for its stake sale in IDBI Bank next month

Necessary amendments to the IDBI Bank Act have already been made through the Finance Act 2021, and transaction advisors have been appointed

The government plans to invite expression of interest to sell its stake in LIC-controlled IDBI Bank by the next month-end, a senior official has said. As part of the divestment, the government plans to sell its entire 45.48 per cent stake eventually.

The government may look to sell around a 26 per cent stake in the bank, along with management control to attract investors, the official said. IDBI Bank became a subsidiary of LIC with effect from January 21, 2019, following the acquisition of an additional 8,27,590,885 equity shares.

On December 19, 2020, IDBI Bank was reclassified as an associate company due