IDBI Bank Sale Called Off As Bids Fall Short, Govt Weighs Fresh Options For Disinvestment

The government’s disinvestment drive has hit a setback after the strategic sale of IDBI Bank was called off due to lower-than-expected bids. The Centre had aimed to raise over ₹70,000 crore from selling a 61% stake, but valuations failed to meet expectations. Sources indicate the government has not shelved the plan entirely and is considering two key options — revisiting the sale when market and geopolitical conditions improve, or exploring a merger of IDBI Bank within the public sector banking space. While a fresh attempt remains the more likely route, achieving better valuations could be challenging. The development raises questions over the government’s broader privatisation roadmap and FY26 disinvestment targets.