Key Points

Speaking about the progress of the high-profile disinvestment, Chawla said all preliminary processes have been completed and the privatisation exercise is now moving into its final phase.

"Due diligence has been completed and data room protocols are completed for all the interested parties," Chawla stated, indicating that potential bidders have been provided comprehensive access to the bank's financial and operational information.

The DIPAM Secretary confirmed that formal consultations with all qualified parties have also been concluded, suggesting that interested bidders have had an adequate opportunity to assess the investment proposition and clarify their queries.

"We hope to receive financial bids by December," Chawla said, expressing optimism about maintaining the proposed schedule for what is considered one of India's most significant banking sector privatisations.

The privatisation of IDBI Bank is expected to bring in substantial resources for the government while potentially improving the bank's operational efficiency under private management.

In May 2021, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, gave its in-principle approval for strategic disinvestment along with the transfer of management control in IDBI Bank.

The government of India and LIC together own more than 94 per cent of equity of IDBI Bank (government 45.48 per cent, LIC 49.24 per cent, the government had then said.

It was expected that the strategic buyer will infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank Ltd and shall generate more business without any dependence on LIC and government assistance or funds.

- ANI