Disinvestment in state-run IDBI Bank is set to be completed by October, with the process of financial bids and the lender’s announcements in the same month, sources told Zee Business. Earlier, the government had said that the bank’s deal is expected to be concluded within the current financial year.
Public sector banks are expected to raise funds to the tune of Rs 40,000-45,000 crore through the qualified institutional placement (QIP) route this year, including State Bank of India’s Rs 20,000 crore, said the sources.
They said that SBI’s QIP will be launched soon, with the government’s approval already in place.
Also, Punjab & Sind Bank, Indian Overseas Bank (IOB), Central Bank of India, and UCO Bank will offload stakes through the offer for sale (OFS) route.
The Department of Financial Services (DFS) has also given the nod to Life Insurance Corporation’s OFS. Part of a broader disinvestment strategy, the LIC OFS is set to promote retail participation while unlocking value in the PSU insurance major.
Bank of Maharashtra will also launch a QIP during the year, in order to meet the minimum public shareholding requirement, according to the sources. As per rules, at least 25 per cent of a listed company’s total shares must be held by public shareholders.
In another significant development, the deadline for such companies to meet the minimum public shareholding norms may be extended from 2026 to 2027.
The proposed offloading of government stake in IDBI Bank has been delayed several times over the past three years. Currently, Government of India and LIC jointly own 94.71 per cent of IDBI Bank.
