Currently, the government owns over 45% stake, while state-owned Life Insurance Corporation owns over 49% of IDBI Bank. | Photo credit: ADNAN ABIDI
The government is confident of handling the IDBI Bank share sale in FY26 itself, Financial Services Minister M. Nagaraju said on Tuesday.
Speaking at the annual GFF, he also said there is no proposal to charge fees on transactions using a unified payment interface (UPI).
The sale of IDBI Bank is going as planned and will be completed before the end of the current fiscal, he said.
It may be noted that the government plans to sell a 60 percent stake in the city-headquartered lender. Currently, the government owns more than 45 percent of the shares, while the state-run Life Insurance Corporation holds more than 49 percent.
Besides IDBI Bank, Nagaraju said the government is also on track to undertake disinvestments in other state-owned banks through offer for sale (OFS) issues, where it plans to divest up to 20 percent stake in four state-owned lenders.
According to the government, the sale of the shares will help it meet the Securities and Exchange Board of India’s requirement that listed companies maintain a minimum public shareholding of 25 percent.
The OFS will be implemented at Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sind Bank to bring government stake below 75 percent, as per previous announcements.
Meanwhile, Axis Bank Managing Director and CEO Amitabh Chaudhry said at the same event that the private sector lender is very keen to provide loans to entities seeking acquisition financing.
He said foreign lenders are occupying a large share of the market in this segment, adding that private credit is a relatively new area within this segment.
Axis Bank is already present in bond and loan syndication, he added.
It may be noted that the Reserve Bank had last week announced a decision to allow domestic banks to make acquisition financing, agreeing to a long-standing request from the lenders.
Meanwhile, on the central bank’s ‘forms of doing business’, Chaudhry said the lender will await the final circular from the RBI before deciding its steps.
Published on October 8, 2025
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