The government is getting financial bids for IDBI Bank

Government officials have repeatedly indicated that the disinvestment process will be completed in FY26 | Photo credit: ADNAN ABIDI

“Financial bids have been received for the strategic disinvestment of IDBI Bank. They will be evaluated as per the prescribed procedure,” DIPAM Secretary Arunish Chawla said in a social media post. While the names of the bidders have not been disclosed, it is believed that Kotak Mahindra and Fairfax have submitted the bids. It is also believed that the reserve price will be determined after receipt of the financial bids, and before they are opened, will be known only to a small group of government officials.

Shares of IDBI Bank rose 3.86 per cent to close at ₹106.92 on BSE on Friday. At this price, the proceeds from the sale could be over ₹70,000 crore, of which the government’s share would be over ₹33,000 crore. The government will waive 30.48 percent and LIC 30.24 percent, leaving them with 15 percent and 19 percent stake respectively.

Government officials have repeatedly indicated that the divestment process will be completed in the fiscal year ending March 2026. Proceeds from the sale are crucial given fears of a shortfall in tax collections.

The completion of regulatory approval means that potential bidders have received ‘fit and proper’ approval from the Reserve Bank of India.

As per the Preliminary Information Memorandum (PIM) for inviting expressions of interest (EOI), in addition to the eligibility criteria and disqualification conditions, interested parties (IPs) would also be subjected to a ‘fit and proper’ assessment by the RBI at the EoI stage.

Only IPs that meet this condition are eligible to issue the RFP. The ‘successful bidder’ would also be subject to the RBI’s ‘fit and proper’ assessment.

The Cabinet Committee on Economic Affairs (CCEA) on May 5, 2021, approved the strategic disinvestment of IDBI Bank along with transfer of management control. After the PIM, multiple EOIs were received and sent to the Ministry of Home Affairs and the RBI for ‘fit and proper’ assessment.

“Following the security clearance from the Ministry of Home Affairs and the RBI’s review, the transaction is now in the due diligence stage with shortlisted bidders,” Finance Minister Nirmala Sitharaman said in a written reply to the Lok Sabha on December 1.

Published on February 6, 2026