After discussions with the RBI, the government is likely to invite expressions of interest for the p

The national government has been considering privatizing IDBI Bank for a while and has retained the lender on its list of businesses that could be sold off. The sale of the bank, which is expected to be another significant step in achieving India's divestment ambitions, is now the subject of roadshows being held by the Department of Investment and Public Asset Management (DIPAM) in the US. After the roadshow is over, the actual amount of the government stake sale at the IDBI Bank will be revealed, the Centre had stated earlier in April.

According to a government official quoted by PTI on Friday, June 10, the government is now organizing roadshows in the US. The insider continued, "It will finalize the details of the IDBI Bank stake sale after a few more of these investor meetings."

"We might need to have another conversation with RBI on the strategic sale of IDBI. By the end of July, the expression of interest (EoI) may be requested, according to the official. The government is expected to finish the disinvestment process in the current fiscal year 2022–2023, as previously stated by sources. The government may issue an EOI in May for the sale of its holding in IDBI Bank.

The official stated that although the amount of the government and LIC's stake dilution has not yet been determined, the strategic sale will transfer managerial control of IDBI Bank.

Tuhin Kanta Pandey, the secretary of DIPAM, had also stated in April that the EoIs would be invited after the investor meetings were over. "The framework of the Expression of Interest will be finalized after the quantum of exit is established following the roadshow. It is a given that management control will be transferred. It is currently under LIC. However, after the EoI structure has been chosen, management control over what degree of ownership must be determined, Pandey had stated in Delhi at a LIC IPO roadshow event.

The government owns 45.48 percent of the bank, and LIC controls the remaining 49.24 percent. Transaction advisors have been appointed, and necessary changes to the IDBI Bank Act have already been implemented by the Finance Act 2021.

The strategic disinvestment and transfer of management control of IDBI Bank received preliminary clearance from the Cabinet Committee on Economic Affairs in May of the previous year. According to a government announcement, "CCEA has given an in-principle clearance for strategic disinvestment coupled with the transfer of management control in IDBI Bank Ltd."

Following the purchase of extra 8,27,590,885 equity shares, IDBI Bank became a subsidiary of LIC in January 2019. Due to the LIC stake dropping to 49.24% in December 2020, IDBI Bank was categorized as an associate company. The government has delayed similar plans for Bharat Petroleum at the same time that efforts are being made to privatize IDBI Bank.EOIfinalized

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