There have occasionally been reports about bank privatization. The government is getting ready for the forthcoming Lok Sabha elections, which will take place in exactly one year.
The disinvestment is moving forward thanks to a plan created by the central government. The Finance Ministry (FM Nirmala Sitharaman) has stated that it works to finish all ongoing projects as quickly as possible. With this, the government can finish privatizing the bank by March 31, 2024. The government is currently concentrating on privatizing IDBI Bank. This can be finished quickly.
This information was received from DIPAM.
The government can finish the disinvestment process of IDBI Bank by March 31, 2024, according to the Department of Investment and Public Asset Management. According to media reports, a representative of the Finance Ministry stated that our current focus is on finishing the ongoing projects. No plans are currently being made to continue privatizing existing public sector organizations.
How much will be left?
In October 2022, Deepam requested proposals for the sale of a 30.48 percent interest in IDBI Bank and a 30.24 percent stake in LIC. Together, the government and LIC own 94.72 percent of IDBI Bank; after the strategic sale, this ownership will drop to 34 percent.
Privatization of the first two banks was announced.
In her budget address in 2021, Finance Minister Nirmala Sitharaman promised to transfer two government banks to private ownership. Still, the circumstances altered due to the Corona pandemic, making it impossible to move through with the privatization of the institutions. As a result, it is now impossible before the general elections, per the information obtained by citing the sources.
Find who is involved in the race to buy IDBI Bank.
Fairfax Financial Holdings, DCB Bank, and Carlyle Group are interested in purchasing this bank. On Wednesday, the bank's shares experienced a significant increase in the wake of this announcement. Each of them is eligible to submit a bid for a stake in IDBI Bank of roughly 10%, according to information obtained from sources.