Govt Moving Ahead with IDBI Bank Disinvestment Plan in Current Fiscal
The Government of India is continuing with its disinvestment plan for IDBI Bank during the 2025-26 financial year, aligning with its broader strategy to monetise assets.
New Delhi: The Government of India is continuing with its disinvestment plan for IDBI Bank during the 2025-26 financial year, aligning with its broader strategy to monetise assets. Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla confirmed the plan is proceeding on schedule.
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Centre and LIC to Jointly Offload Over 60% Stake
The central government and Life Insurance Corporation of India (LIC) aim to jointly offload a 60.72% stake in IDBI Bank, with the Centre holding 30.48% and LIC owning 30.24%. This move is part of a structured approach to meet regulatory norms and drive long-term value creation.
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Focus on Phased and Market-Sensitive Asset Sales
Chawla stated that asset monetisation, including public sector bank divestments, would be carried out in a phased and market-sensitive manner. Due diligence on IDBI Bank has been completed, and negotiations on the share purchase agreement are currently underway.
MTNL Asset Monetisation Also in Progress
Efforts to monetise land and infrastructure assets of MTNL are also ongoing. A flexible approach is being adopted for entities that must meet SEBI’s public float norms, with extensions granted to some companies.
LIC Stake Dilution Planned by FY 2026-27
On LIC, Chawla confirmed the government’s plan to gradually reduce its stake to meet the Minimum Public Shareholding (MPS) requirement by March 2027, in accordance with SEBI rules. Small, regular offers for sale are planned to maintain market stability and investor interest.
Government Sets Rs 47,000 Crore Target for FY26
For the 2025-26 financial year, the government has set a disinvestment and asset monetisation target of Rs 47,000 crore. Market analysts have emphasized the importance of market absorption capacity, supporting the strategy of gradual stake sales over large one-time offloads.
