Synopsis : The government’s disinvestment drive gains momentum as a key panel prepares to review the Share Purchase Agreement for IDBI Bank’s strategic sale. This crucial step is expected to pave the way for inviting financial bids, aiming to conclude the deal within FY26.
A crucial step in India’s divestment journey is underway as a key government panel is set to meet to review the Share Purchase Agreement (SPA) for the strategic sale of IDBI Bank. Sources indicate that the Inter-Ministerial Group (IMG) will evaluate the SPA, which will then move to the Core Group of Secretaries before final approval by the ministerial panel.
The Finance Minister had earlier stated that the IDBI Bank deal is expected to conclude within FY26, with financial bids likely to be invited in September once the SPA receives internal clearances. The sale of IDBI Bank has faced repeated delays over the past three years and is a central pillar in the government’s broader disinvestment strategy, with expectations of raising Rs 40,000–50,000 crore from the process.
Currently, the government and LIC jointly hold a 95% stake in IDBI Bank, with 60.72% marked for sale. The outcome of this SPA review will determine the timeline for inviting financial bids, moving India a step closer to its divestment targets and potentially opening opportunities for private sector participation in the banking space.
Disclaimer : This article is for informational purposes only and does not constitute financial advice. Please consult a qualified advisor before making investment decisions.
