The government has confirmed that it has received financial bids for the strategic disinvestment of IDBI Bank, bringing renewed focus to the long-pending privatisation process that has faced delays for over three years.
The proposed transaction involves the sale of a combined 60.72% stake in IDBI Bank by the central government and the Life Insurance Corporation of India (LIC). Of this, the government holds a 30.48% stake, while LIC owns 30.24%.
Significance of DIPAM’s Update
The Department of Investment and Public Asset Management (DIPAM) stated that the submitted financial bids will now be examined in line with the prescribed evaluation process. While specific details have not been disclosed, the confirmation marks a key milestone, indicating that the disinvestment exercise has entered a more advanced phase.
The privatisation process was initiated in October 2022 with the invitation of Expressions of Interest (EoIs). By January 2023, several interested parties had submitted their EoIs, setting the stage for the next steps in the transaction.
Next Steps in the Sale Process
The immediate next milestone will be the determination of a reserve price for the transaction. This price will be based on independent valuations conducted by the Transaction Adviser and the Asset Valuer, each applying their respective methodologies.
Once the reserve price is finalised, the sealed financial bids already received will be opened in the presence of the bidders. The bidder offering the highest valid price above the reserve price will be selected as the preferred bidder.
The final decision will then be reviewed and approved by the Alternative Mechanism, which operates under the authority of the Cabinet Committee on Economic Affairs.
IDBI Bank’s Q3 FY26 Financial Performance
IDBI Bank reported a largely stable performance for the quarter ended December 2025, posting a net profit of ₹1,935 crore, marginally higher than ₹1,908 crore recorded in the same quarter last year.
However, the bank’s total income declined year-on-year to ₹8,282 crore from ₹8,565 crore, while interest income fell to ₹7,074 crore compared with ₹7,816 crore in the previous year period.
Asset quality showed improvement during the quarter, with the gross non-performing asset (NPA) ratio easing to 2.57% from 3.57% a year earlier.
Summary
The government has received financial bids for the strategic disinvestment of IDBI Bank, marking progress in the long-delayed privatisation process. With bid evaluation underway, the next steps include setting a reserve price and opening financial bids. Despite pressure on income, IDBI Bank reported stable profits and improved asset quality in Q3 FY26, which could influence investor interest in the transaction.
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.