EoI for IDBI’s Bank’s privatization likely within a month

“There were not strictly roadshows that were held; they were only held to understand transactions,” Rakesh Sharma told reporters at a conference call post-April-June quarterly results. “Some of the investors were interested in understanding how the transfer will happen etc. So, once the EoI is issued, the process will start and bids will be called. Within a month or so, this EoI is expected.”

As of now, the “status quo remains,” added Sharma. The transaction adviser and legal adviser are already appointed, he said.

The “strategic disinvestment” of the government stake in IDBI Bank is a long-standing issue. The government had announced its plan to privatise the bank in February 2021. The process was expected to be completed by March 2022.

Sharma’s comments come after the government, in response to a Right to Information (RTI) query filed by Moneycontrol, said it can’t share the status of IDBI Bank’s privatisation or offer a timeline for the completion of the process as it was a matter of state’s “economic interests.” Moneycontrol had also reported on July 19 that the government is understood to be in talks with a clutch of potential investors, including Canadian billionaire Prem Watsa’s Fairfax Financial Holdings, for IDBI Bank stake sale.