IDBI Bank Privatisation Timeline Extended to FY27
The government’s strategic disinvestment of IDBI Bank has been pushed to FY27, extending a process that has faced delays amid valuation issues and geopolitical developments. The proposed transaction involves the sale of a 60.72% stake along with management control. The government and Life Insurance Corporation of India (LIC) together hold about 94.71% of the bank.
Under the proposed transaction, the Centre plans to sell its 30.48% stake, while LIC would divest 30.24%. The privatisation process has attracted interest from bidders including Fairfax Financial Holdings and Emirates NBD. However, the initial financial bids submitted in February 2026 were reportedly below the reserve price, leading to a pause in the process.
The government subsequently revived the transaction and invited revised financial bids from the shortlisted bidders. Both Fairfax and Emirates NBD submitted revised offers on July 13, 2026. The bidders had also received security clearance from the Ministry of Home Affairs and the Reserve Bank of India’s fit-and-proper assessment.
The government is now evaluating the revised bids, with the transaction targeted for completion during FY27. The IDBI Bank privatisation remains an important part of the government’s strategic disinvestment programme and would represent its first successful privatisation of a bank if completed.
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