🔹 What’s Happening
- The Indian government, together with LIC, plans to offload a 60.72 % stake in IDBI Bank. They aim to complete the strategic sale by October 2025, marking it as India’s first major bank privatisation of this scale .
- Government panels like the Inter-Ministerial Group (IMG) and the Core Group of Secretaries on Disinvestment (CGD) have convened in early July to finalise the draft Share Purchase Agreement (SPA) — a crucial milestone before inviting financial bids.
- According to Reuters, the government’s overall disinvestment plan—which includes the IDBI sale—aims to raise ₹450 billion (~US $5.25 billion) in FY 2025–26, with IDBI’s stake sale expected to wrap by October .
🏦 Why It Matters
Key contenders for the stake include Fairfax India, Emirates NBD, and Kotak Mahindra, who are expected to submit financial bids soon
The deal will shift ownership and management control away from the government, setting an important precedent for further privatisation of state-run banks.
It’s part of a broader strategy: in FY 2025–26, the government plans to raise ₹470 billion through stake sales and asset monetisation.
