Government Re-Examines IDBI Bank Disinvestment Bids After Undervaluation Concerns

The government is re-evaluating the disinvestment process of IDBI Bank after financial bids came in significantly below expectations. Sources indicate the bids were not scrapped but put on hold due to undervaluation, with offers reportedly nearly 60% lower than the reserve price of ₹90,000 crore. The Centre is now exploring ways to revive the sale without compromising on valuation. The IDBI Bank stake sale is a key part of the government’s divestment agenda in the financial sector, involving plans to offload around 60% stake. However, timelines remain uncertain given market conditions and the complexity of the deal.