The disinvestment process of IDBI Bank is moving swiftly, with technical bidders completing the due diligence process, a crucial step before the opening of financial bids. According to a source, the bidders have finished reviewing confidential data, including information on the bank’s top borrowers, non-performing assets (NPAs), and liabilities, which will help determine the bank’s valuation. With this process complete, the government will soon invite financial bids.
The disinvestment is expected to be completed within the next 3-4 months, making it one of the largest after the Air India privatisation. Market experts believe the successful sale of IDBI Bank will demonstrate the government’s commitment to its disinvestment strategy, speeding up the process. The government, along with the Life Insurance Corporation of India (LIC), is selling a 60.74% stake in IDBI Bank, including management control.
The successful completion of the IDBI Bank disinvestment is likely to have significant implications for the Indian banking sector, and the country’s overall economy. It is expected to raise much-needed funds for the government and potentially reshape the financial landscape. The discretion of the government in selecting the right buyer will be crucial in ensuring a smooth transition and maintaining the bank’s financial health. With the due diligence process now complete, all eyes are on the government to finalize the sale and set a new chapter for IDBI Bank.