Financial bids for IDBI Bank likely by June

The centre hopes to seek financial bids within three months for the proposed stake sale in IDBI Bank, government sources have told Business Today Television.

Denying any deferment of the disinvestment process of IDBI Bank, the Department of Investment and Public Asset Management (DIPAM) says the process is on track.

"The RBI has sought more information, which is part of the process. All papers need to be scrutinised. Security clearance from MHA and fit and proper clearance from the RBI would be necessary for the bidders to move to the second stage of the bidding process - due diligence and the subsequent invitation of financial bids," an official said.

The centre is confident of executing the transaction in fiscal 2023–24. "The geo-political situation has impacted market sentiment and also minority stake sales, but we have to move ahead carefully since the external factors will always exist", an official shared.

The government expects interested bidders to also scrutinise the value of the asset they are investing in. "The bidders would also want to review the terms and conditions, assets, and expected valuation, which is part of the process," he added.

The government and the LIC are together selling about 61 per cent stake in IDBI Bank and had in January received multiple expressions of interest for the same. The government and LIC together hold a 94.72 per cent stake in IDBI Bank, which will come down to 34 per cent after the strategic sale.

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