A top government panel held meetings on Monday to review revised financial bids from Emirates NBD and Fairfax Financial Holdings Ltd and decide the next steps in the long-pending strategic sale of IDBI Bank Ltd, a senior government official aware of the matter said.
The meetings of the Core Group of Secretaries on Disinvestment were attended by Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla, Department of Financial Services (DFS) Secretary Sanjay Lohiya and other senior government officials. However, no final decision has been taken on the proposed stake sale, the official cited earlier said on condition of anonymity.
“Two meetings of the Core Group of Secretaries on Disinvestment (CGD) were held during the day to deliberate on the strategic sale. An Inter-Ministerial Group (IMG), co-chaired by Chawla and Lohiya, also met to review the transaction,” said the official.
The discussions come as the government revives the long-pending strategic sale process, having invited revised financial bids earlier this month from the two shortlisted bidders after their earlier offers fell below the reserve price.
The Centre and LIC plan to sell a combined 60.72% stake in IDBI Bank— 30.48% held by the government and 30.24% by LIC—along with the transfer of management control. Together, they hold close to 95% of the bank. The transaction, once completed, is expected to be the largest strategic disinvestment in India’s banking sector.
“It is too early to say which bidder is ahead in the race. The timeline for completing the transaction also cannot be determined at this stage,” the official said.
Shares of IDBI Bank rose nearly 3% to settle at ₹86.50 on the BSE on Tuesday.
Emails sent to the finance ministry, DIPAM, DFS, IDBI Bank, Fairfax India Holdings, Emirates NBD and LIC on Tuesday evening seeking comments remained unanswered till press time.
The strategic sale process was launched in October 2022, when the government and LIC invited expressions of interest from prospective investors. Financial bids from shortlisted bidders, including Canadian billionaire Prem Watsa-controlled Fairfax Financial Holdings and Emirates NBD, were received on 6 February. However, the bids were below the reserve price fixed by the inter-ministerial group overseeing the disinvestment, prompting the government to put the process on hold.
The sale process was revived in the current financial year, with the government inviting revised financial bids from the two suitors earlier this month. Officials expect the transaction to gather pace after Monday’s meetings, although the final contours of the deal are yet to be decided.
The proposed transaction assumes significance as the government seeks to step up capital receipts in FY27. In the Union Budget for 2026-27, the Centre aims to mobilise ₹80,000 from disinvestment and asset monetisation.
The government also discontinued the practice of announcing a standalone disinvestment target beginning with the Interim Budget for FY25 presented on February 1, 2024. Since then, receipts from disinvestment and asset monetisation have been combined under the broader category of Miscellaneous Capital Receipts, reflecting a shift in the Centre’s approach to monetising public assets.
