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Govt to soon invite bids for IDBI Bank privatization
September 15, 2022
The government will soon invite preliminary bids from investors for the IDBI Bank stake sale and is working on the Expression of Interest (EoI) document, said Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM). “We have been at it for quite some time. It is also a first-of-its-kind transaction where, through a bidding route, we will be privatising a bank,” he said while addressing the ‘Ficci CAPAM 2022 – 19th Annual Capital Markets Conference’ on Wednesday.
The government and Life Insurance Corporation of India together hold 94% in IDBI Bank.
The Cabinet Committee on Economic Affairs gave in principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May 2021.
Since IDBI Bank had come out of the Prompt Corrective Action (PCA) framework, its performance has improved, which would generate greater interest among investors, he added.
In March 2021, the Reserve Bank of India had removed IDBI Bank from its enhanced regulatory supervision PCA framework.
“We should clearly look at disinvestment less from the fiscal angle but more from the angle of reforms that it can bring,” Pandey said.
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