IDBI Bank has addressed recent media reports concerning its ongoing strategic disinvestment process. The bank clarified that the initiative is a confidential project managed by the Government of India via a competitive bidding process, which does not involve direct negotiations. The bank reiterated that it has consistently kept stakeholders informed regarding the progress of this transaction through various official disclosures since the process began in May 2021.
Strategic Disinvestment Status
Following recent media speculation, IDBI Bank has clarified that the proposed Strategic Disinvestment remains a confidential process directed by the Government of India (GOI). The bank emphasized that the transaction follows a structured competitive bidding process and does not involve private negotiations, meaning the bank itself is not a participant in such discussions.
Key Historical Developments
To ensure transparency, the bank highlighted several critical milestones that have occurred since the project’s inception:
- May 5, 2021: The Cabinet Committee on Economic Affairs granted in-principle approval for the disinvestment and transfer of management control.
- October 7, 2022: Appointment of KPMG India as the Transaction Advisor and Link Legal as the Legal Advisor. At this time, it was noted that the government and LIC intended to sell shares totaling 60.72% of the bank.
- October and December 2022: Various amendments were issued to the Preliminary Information Memorandum for interested bidders.
- January 5, 2023 & August 23, 2025: Regulatory approvals were granted for the re-classification of the GOI and LIC, respectively, as public shareholders upon the completion of the sale.
Commitment to Transparency
The bank confirmed that it has not received any new communications from the government regarding the current status of the disinvestment. The institution remains committed to promptly disclosing any material information as it becomes available to ensure investors stay informed throughout the process.
Source: BSE
