As per news reports, the Centre is once again exploring ways to revive the long-pending privatisation of IDBI Bank after the earlier bidding process failed to meet the government’s reserve price expectations.
The government is reportedly examining multiple legal and procedural options, including the possibility of reconsidering bids submitted by Prem Watsa-led Fairfax Financial Holdings and Emirates NBD. The development comes as the Centre looks to strengthen non-tax revenue collections through strategic disinvestment and asset monetisation.
According to reports, the IDBI Bank privatisation process was never officially scrapped despite financial bids falling below the undisclosed reserve price earlier this year.
The Centre and Life Insurance Corporation of India (LIC) together plan to sell a combined 60.72% stake in IDBI Bank, including the government’s 30.48% holding and LIC’s 30.24% stake.
At the current market price, the proposed transaction could fetch around ₹24,000 crore. Reports suggest that authorities are now studying whether existing bids can still be accepted under provisions available within the tendering framework.
The government is also reportedly evaluating concerns related to IDBI Bank’s limited public shareholding, which currently stands at just 5.29%. Reports indicate that guidance from the Securities and Exchange Board of India (SEBI) may be sought on valuation-related matters.
The privatisation process had slowed down in March 2026 after bids received from interested parties reportedly failed to cross the reserve price threshold. Following the development, IDBI Bank shares witnessed sharp volatility and declined significantly from their 52-week highs.
However, the stock has seen some recovery in recent months amid expectations of renewed privatisation efforts.
Even if the sale process moves forward, the successful bidder will still require multiple regulatory approvals. This includes clearance from the Reserve Bank of India (RBI) under its ‘fit and proper’ criteria and approvals from agencies such as the Competition Commission of India (CCI).
The selected bidder will also be required to make an open offer to minority shareholders as part of the transaction process.
The renewed discussions around IDBI Bank’s privatisation indicate that the Centre remains committed to completing one of India’s most closely watched strategic disinvestment deals. While valuation concerns and regulatory clearances remain key hurdles, the government appears keen to revive the process amid its broader asset monetisation targets for FY27.
Investors with a demat account can closely track IDBI Bank share price performance digitally on their mobile phones.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 29, 2026, 12:11 PM IST
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