AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
India official: Hope to complete IDBI stake sale by Oct
ByAinvest
Wednesday, Jul 9, 2025 11:34 am ET1min read
India official: Hope to complete IDBI stake sale by Oct
India's government is optimistic about completing the strategic sale of its stake in IDBI Bank by October. The move is part of the broader divestment strategy aimed at raising funds and reducing the government's fiscal burden. A key government panel is set to review the Share Purchase Agreement (SPA) for the sale, which is a crucial step in the process [2].The government has been delaying the sale due to various reasons, but it is now nearing the final stages. According to sources, the Inter-Ministerial Group (IMG) will review the SPA and other related matters. Following this, the Core Group of Secretaries on disinvestment will vet the proposal before it is sent to the ministerial panel for final approval [2].
The government is eyeing a significant amount from the IDBI Bank disinvestment, with estimates ranging from Rs 40,000 to Rs 50,000 crore. The sale of the government's stake in IDBI Bank has been delayed multiple times over the past three years. Currently, the government and Life Insurance Corporation of India (LIC) jointly own 95 per cent of IDBI Bank, with 60.72 per cent earmarked for sale [2].
The privatization of IDBI Bank has sparked concerns among employees and political leaders. Employees have expressed fears about job losses and precarious service conditions if the bank is privatized. Rajya Sabha MP Bonoy Viswam has urged the government to reconsider the decision, highlighting the bank's public character and the assurances given by the NDA government in 2003 [3].
The government's decision to privatize IDBI Bank is part of a broader trend of selling stakes in public sector banks. The sale of IDBI Bank is expected to be concluded within the current financial year, with financial bids likely to be invited in September [2].
References:
[1] https://www.financialexpress.com/business/banking-finance-idbi-bank-sale-moves-forward-govt-panel-to-meet-review-share-purchase-agreement-3905508/
[2] https://www.nationalheraldindia.com/india/reconsider-move-to-privatize-idbi-bank-rs-mp-viswam-urges-centre-employees-hit-streets-during-bharat-bandh
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet