BT India @100: IDBI stake sale on track; will energise the banking sector, says DIPAM Secretary

Speaking at the BT India@100 event, Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), reaffirmed the government's commitment to its strategic disinvestment agenda, highlighting the IDBI Bank sake sale as a landmark move poised to energise the banking sector.

Addressing questions on the complexities of the IDBI disinvestment, Chawla acknowledged the global headwinds but emphasised that the government had prepared well in advance. “We did prepare the entire department and our public enterprise partners to ride the shock comfortably. You will see that this will pay off,” he said.

Describing the IDBI Bank deal as the “largest disinvestment so far,” Chawla called it a strong step toward strengthening India’s financial sector as the country progresses towards its $5 trillion economy goal, with a long-term vision of reaching $10 trillion.

While refraining from disclosing future disinvestment targets due to market sensitivity, Chawla assured that a pipeline exists and will be revealed at the appropriate time. “Not every transaction detail can be given out before it matures,” he stated.

On the question of the Life Insurance Corporation (LIC) follow-on public offering (FPO), Chawla confirmed that the government would abide by the stipulated timelines. “Absolutely,” he said when asked if LIC’s FPO was on the radar in the coming months.