A key government panel is expected to meet on Monday to take forward the divestment process of private sector lender IDBI Bank, sources told CNBC TV18. The report further maintained that the panel may deliberate on the Share Purchase Agreement (SPA), which is central to the proposed strategic sale.
According to sources who talked to the publication, the Inter-Ministerial Group (IMG) will review the SPA and other related matters. Post this, Core Group of Secretaries on disinvestment will vet the proposal before it is sent to the ministerial panel for final approval.
Earlier, Finance Minister Nirmala Sitharaman had stated that the IDBI Bank deal is expected to be concluded within FY26. Once the internal approvals on the SPA are received, the government will start inviting financial bids from potential buyers.
Another report by CNBC TV18 in June had maintained that the government is nearing the finalisation of a SPA with prospective buyers. The report had further stated that the financial bids are likely to be invited in September.
The government is, per media reports, eyeing Rs 40,000- Rs 50,000 crore from IDBI Bank disinvestment.
The sale of the government’s stake in IDBI Bank has been delayed multiple times over the past three years and is considered a key element of its broader divestment strategy.
Currently, the government and Life Insurance Corporation of India (LIC) jointly own 95 per cent of IDBI Bank, with 60.72 per cent earmarked for sale.