IDBI Bank Disinvestment Enters Advanced Phase as Government Signals More Deals Ahead

India’s strategic disinvestment programme continues to progress, with the sale of IDBI Bank entering an advanced stage. 

DIPAM Secretary Arunish Chawla has indicated that the process is moving steadily, alongside broader discussions on public sector enterprise policy, possible structural changes in the power financing space, and an active pipeline of divestment transactions in the current and next financial years.

IDBI Bank Disinvestment Moves to Stage Three

The strategic disinvestment of IDBI Bank has progressed to stage three, with the government inviting both technical and financial bids for the transaction. 

According to DIPAM Secretary Arunish Chawla, the process is now at an advanced phase, and further clarity on the sale is expected to emerge before the end of FY26, as per The Economic Times report.

The development marks a key step in the government’s ongoing efforts to reduce its stake in select public sector entities.

Government Stake in PSEs Remains Under Discussion

Responding to reports about lowering the government’s shareholding in certain public sector enterprises to 26%, Chawla noted that the Economic Survey serves as an ideation document. 

He stated that all options remain open and would be examined within the policy framework, in line with the government’s broader public sector enterprise policy. 

Any decisions would follow due deliberation in the policy domain.

PFC–REC Merger: Options Still Open

On the subject of a potential merger between Power Finance Corporation (PFC) and REC Ltd, Chawla said the underlying idea is to create a central institution to finance power utilities at both the central and state levels. 

At the same time, maintaining economies of scale would remain an important consideration. 

He clarified that any such move would be subject to decisions by the respective boards, with multiple options currently under evaluation.

Pipeline of Divestment Deals

Chawla also highlighted that the government generally keeps 3 to 4 disinvestment transactions active at any given time. 

He added that investors could expect a similar number of additional deals in the current financial year, with the overall pipeline likely to expand further in the next fiscal year.

Read More: Union Budget 2026 Highlights: Your 5-Minute Guide to Fiscal, Tax and Sectoral Measures.

Conclusion

The latest comments from the DIPAM Secretary indicate steady progress in India’s disinvestment agenda, with IDBI Bank reaching an advanced stage of sale and several policy discussions underway across sectors. As the government balances strategic objectives with market considerations, developments over the coming months are expected to provide greater clarity on both individual transactions and the broader divestment roadmap.

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