IDBI Bank Privatization Progresses with Asset Valuation

The Indian government is advancing its privatization efforts of IDBI Bank by appointing asset valuers and finalizing a share purchase agreement. With security and regulatory clearances in place, the strategic sale, involving a 60.72% stake, is expected to conclude in 6-7 months with financial bids forthcoming.

The Indian government is steadily progressing with the privatization of IDBI Bank, having now appointed asset valuers to assess its worth as it deliberates the terms of a share purchase agreement with potential buyers. DIPAM Secretary Arunish Chawla confirmed these developments, noting the strategic sale remains underway as per government directives.

The privatization process has been ongoing for over two and a half years. In October 2022, the government, alongside Life Insurance Corporation (LIC), sought Expressions of Interest (EoI) from investors for the sale of a 60.72% stake in IDBI Bank, split equally between the government and LIC's holdings.

Furthermore, a virtual data room has been set up for due diligence, and an asset valuer is in position. Financial bids will soon be invited, with the transaction anticipated to conclude within the next 6-7 months following the receipt of reports establishing the bank's reserve price.

(With inputs from agencies.)