IDBI Bank Sale Progress: Potential Investors Secure Home Ministry Clearance, RBI Approval Pending For Privatisation

Potential investors in IDBI Bank have been given the essential security clearance from the Home Ministry, and approval from the Reserve Bank of India (RBI) is expected soon, as per a report by The Economic Times..

The government, along with LIC (Life Insurance Corporation), is selling nearly 61 per cent of its stake in IDBI Bank, including a 30.48 per cent stake from the Government of India and 30.24 per cent from LIC.

In January 2023, the Department of Investment and Public Asset Management announced that it had received multiple expressions of interest for purchasing a stake in IDBI Bank.

Interested bidders must obtain two sets of clearances: one from the Home Ministry for security clearance and another from the RBI to meet the 'fit and proper' criteria.

It has been over a year and a half since the RBI began scrutinising the details sent by potential investors, resulting in delaying the privatisation of IDBI Bank.

According to the same report, once the required clearances are obtained, investors will gain access to the data room, and the due diligence process will commence.

Shares of IDBI Bank were trading at Rs 102.12, up 4.70 per cent from the previous close on the Bombay Stock Exchange.

The government and LIC currently hold a 94.72 per cent stake in IDBI Bank, which will be reduced to 34 per cent after the strategic sale.