The government has extended the timeline for completing the strategic disinvestment of IDBI Bank to FY2026–27, with the process facing delays amid geopolitical and transaction-related considerations. The government and Life Insurance Corporation of India (LIC) are seeking to sell a combined 60.72% stake in the bank—30.48% held by the government and 30.24% held by LIC—along with management control. The process is being managed by the Department of Investment and Public Asset Management (DIPAM).
The privatisation has since moved substantially forward. In October 2026, the government approved Fairfax Financial Holdings’ group entity as the strategic buyer, with the transaction valued at approximately ₹52,878 crore. The sale remains subject to regulatory and other required approvals, including the RBI process, and is expected to be completed by the end of FY27. The transaction would leave the government with 15% and LIC with 19% in IDBI Bank, while marking a major step in India’s public-sector bank privatisation programme.
Want to deepen your expertise beyond today’s news?
Explore practical certification courses designed for banking, risk, insurance, compliance, ESG, AI, and emerging technologies professionals.
Learn from industry experts and earn certifications from RMAI and BFSI Sector Skill Council of India.
#Riskmanagementnews