Shares of IDBI Bank were trading at an intraday high of over 11 per cent after Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said that the Reserve Bank of India’s (RBI’s) vetting process to ascertain potential bidders for IDBI Bank is at an advanced stage.
The Centre, which owns a 45.48 per cent stake in IDBI Bank, and the state-owned Life Insurance Corp of India, 49.24 per cent, together plan to offload 60.7 percent of their holdings in the lender.
In an interview to Moneycontrol on July 23, Pandey said that the vetting process is taking some time “following which we will do the due diligence”. The central bank’s approval will pave the way for the bank’s strategic disinvestment, with bidders meeting the ‘fit and proper’ criteria.
To qualify, bidders for IDBI Bank must have a minimum net worth of Rs 22,500 crore and have reported net profits in three of the last five years.
The RBI began the vetting process, or the “fit and proper criteria”, in April after Kotak Mahindra Bank, the Prem Watsa-backed CSB Bank and Emirates NBD submitted their initial bids to acquire a majority stake in IDBI Bank.
The IDBI Bank stake sale is part of the government’s Rs 51,000 crore overall monetisation target for 2023-2024.
IDBI Bank on July 22 reported a 40 per cent rise in net profit during the first quarter of FY25.
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