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The process of IDBI Bank’s divestment is set to gain momentum, with the invitation for financial bids likely to begin next month
IDBI Bank
The process of IDBI Bank’s divestment is set to gain momentum, with the invitation for financial bids likely to begin next month, according to a Moneycontrol report citing government sources.
As per the report, an Inter-Ministerial Group (IMG) — comprising secretaries from the Department of Investment and Public Asset Management (DIPAM) and the Department of Financial Services (DFS) — is expected to meet on October 31 to finalise and approve the bidding process for the government’s stake in IDBI Bank.
Shares of IDBI Bank surged over 7% in early trade on Tuesday, reacting positively to the news.
What the upcoming meeting may discuss
According to sources, the meeting is likely to approve the final draft of the Share Purchase Agreement (SPA) — a key document outlining buyer obligations, transfer of management control, and post-sale responsibilities. The IMG is also expected to set the timeline for inviting financial bids from shortlisted investors.
A person familiar with the matter told Moneycontrol that this meeting will be crucial in moving the transaction into its final phase. “Most of the groundwork has already been completed. The meeting at the end of this month is expected to clear the remaining procedures so that financial bids can be invited without delay,” the person said.
Long-awaited privatisation
The approval of the SPA and the invitation for financial bids will mark the final stage of IDBI Bank’s privatisation process, which began in 2021. The Central Government and Life Insurance Corporation of India (LIC) together hold about 94.71% stake in the lender and plan to sell 60.72% to a strategic investor, who will also gain management control of the bank.
A government source told Moneycontrol, “The transaction documents are now in the final stages. Once the IMG gives its nod, DIPAM will swiftly move to invite financial bids.” The source added that quick approvals from the Core Group of Secretaries on Disinvestment (CGD) and the ministerial panel led by the Finance Minister will also be sought.
The financial bids are expected to be invited by December, followed by the evaluation process. Once the winning bidder is selected and the deal is approved by the Cabinet, the transaction will move toward completion, marking India’s first bank privatisation in over two decades.
The government has already indicated its intent to complete the sale within the current financial year, making this a major milestone in its disinvestment and banking reform agenda.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 28, 2025, 13:39 IST
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