Government likely to complete IDBI Bank’s privatization in next financial year
As part of this due diligence, potential bidders will be granted access to a virtual data room. The entire process is expected to be completed in the coming months.
Government likely to complete IDBI Bank privatization in next financial year
The government anticipates Financial bids for IDBI Bank to be submitted within the current fiscal year (FY25), while the privatization process is anticipated to conclude in the next financial year (FY26). According to sources, the Reserve Bank of India has issued a "fit and proper" report on potential bidders, and the due diligence process will now commence.
As part of this due diligence, potential bidders will be granted access to a virtual data room. The entire process is expected to be completed in the coming months.
“Once the due diligence by the potential bidders is completed, financial bids would be called for. This is likely to be done within this financial year,” according to sources. This would mean that the privatization of the lender would stretch into the next fiscal year 2025-26. “As of now, there is no fixed timeline for the exercise. It will be completed as early as possible,” the source underlined.
Read Also : Minister Pralhad Joshi Flags Off 10 Battery-Operated Vehicles at Jagannath TempleAs part of the disinvestment, the Centre along with Life Insurance Corporation of India will sell a 61% stake in the bank. This includes a 30.48% stake in the Government of India and 30.24% in LIC. The process of the lender’s privatisation had begun in January 2023 when the Centre had issued an Expression of Interest and it was expected to be completed this fiscal, although a formal deadline has not been set.
No specific target has also been put in the Union Budget 2024-25. For FY25, the Budget has estimated raising Rs 50,000 crore from “miscellaneous capital receipts”, which will be a mix of asset monetization and disinvestment.
As per the latest data, the Centre has raised Rs 38,318.64 crore as DIPAM receipts so far this fiscal. This includes Rs 8,625.05 crore from disinvestment receipts and Rs 29,693.41 crore from dividend receipts this fiscal.
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