IDBI Bank privatisation picks pace, govt may allow access to private data by early August: DIPAM Secy

As the privatisation process of the IDBI bank moves ahead, the Divestment Secretary Tuhin Kanta Pandey on Friday declared that the Indian government will allow bidders to access private data of the bank by early August. The secretary also said the Reserve Bank of India has indicated completion of its “fit and proper” vetting of potential bidders of IDBI Bank, Reuters reported.The government, which owns a 45.48 per cent stake in IDBI Bank, is looking to divest 30.48 per cent. State-run Life Insurance Corporation of India, another shareholder of the bank with 49.24 per cent, plans to sell 30.24 per cent. DIPAM had last year declared that the IDBI Bank strategic sale has drawn interests from multiple players but didn’t name them.

ET had earlier reported on Tuesday that authorities are at an “advanced stage” of wrapping up the process to identify “fit and proper” buyers for a majority stake in IDBI Bank and the strategic sale of the state-run lender is expected to be concluded this fiscal.

In a post-budget interview to ET, the divestment secretary noted that the government will follow a ‘calibrated disinvestment strategy’ without any specific ‘big-bang target’ and ensure state-run firms, whether they are disinvestment candidates or not, continue to create value for themselves.

Once the potential bidders are declared fit and proper by India’s central bank, they will be allowed to enter the virtual data room for exclusive details about the state-run lender to start their due diligence. The share purchase agreement and related issues will also have to be sorted out before the government invites the financial bids from the bidders.

“All these things take a considerable amount of time but we hope to conclude the transaction this fiscal,” said Pandey.

IDBI awaits RBI’s nod to investors:
It has been more than one-and-a-half years that the RBI has been examining the details submitted by potential investors, which has led to missing the deadline for the privatisation of the IDBI Bank.

“Security clearance for the potential bidders has already come in. The clearance from RBI is also expected soon,” the official told PTI.

The government has budgeted to raise Rs 50,000 crore from disinvestment and asset monetisation in the current fiscal.

(with agency inputs)

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