Lok Sabha Question No. 17 (STARRED), answered on 2025-12-01
Subject: Strategic Disinvestment of IDBI Bank
Ministry: FINANCE
Asked by: Shri Sudheer Gupta, Shri Chavan Ravindra Vasantrao

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT (DIPAM)

## LOK SABHA STARRED QUESTION NO. *17

TO BE ANSWERED ON MONDAY, DECEMBER 01, 2025 AGRAHAYANA 10, 1947 (SAKA)

## STRATEGIC DISINVESTMENT OF IDBI BANK

- *17. Shri Chavan Ravindra Vasantrao, Shri Sudheer Gupta

Will the Minister of FINANCE be pleased to state: (a)  whether  the  Government  has  any  proposal/plans  for  strategic  disinvestment  in  IDBI Bank; (b)  if  so,  the  details  thereof  along  with  the  time  by  which  the  process  of  strategic disinvestment in IDBI Bank is likely to be completed; (c) whether any foreign bank/financial institution has shown interest in acquiring the IDBI Bank and if so, the details thereof; (d)  the  quantum  of  revenue  likely  to  be  generated/earned  by  the  Government  and  Life Insurance Corporation of India through this strategic disinvestment of IDBI Bank; and (e)  whether  the  Government  has  consulted  Unions  and  Associations  of  IDBI  Bank employees to address their concerns about the proposed disinvestment of IDBI Bank and if

- so, the details thereof?

## ANSWER

## THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

- (a) to (e) A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION  NO.*17  TO  BE  ANSWERED  ON  01 st   DECEMBER,2025,  REGARDING 'STRATEGIC DISINVESTMENT OF IDBI BANK'

(a)  and  (b)  The  Cabinet  Committee  on  Economic  Affairs  (CCEA)  in  its  meeting  on 05.05.2021  has  given  'in  principle'  approval  for  the  strategic  disinvestment  along  with transfer  of  management  control  in  IDBI  Bank  Ltd.  of  such  extent  of  shareholding  in Government of India and LIC as may be decided in consultation with LIC and within the framework agreed to by the Reserve Bank of India (RBI).

Pursuant to the CCEA's (Cabinet Committee on Economic Affairs) approval in May 2021 for strategic disinvestment along with transfer of management control in IDBI Bank Ltd, 60.72% of  IDBI  Bank's  equity  is  being offered  for strategic  disinvestment  with  transfer  of management control, wherein GoI is offering 30.48% (post sale GOI's residual equity to be 15%)  and  Life  Insurance  Corporation  of  India  (LIC)  is  offering  30.24%  equity  for disinvestment (post sale LIC's residual equity to be 19%).

The Preliminary Information  Memorandum (PIM) for inviting Expression  of  Interest  (EoI) from potential bidders was published on 7 th  October, 2022. In response to the PIM, multiple Expressions of Interest (EOIs) were received. These EOIs were sent to Ministry of Home Affairs (MHA) for Security clearance and the Reserve Bank of India (RBI) for 'fit and proper' assessment. After security clearance from MHA and fit and proper evaluation by RBI, the transaction is currently in the stage of due diligence by Shortlisted Bidders (SBs).

(c) As per the extant process, the identity of bidders cannot be disclosed before completion of the transaction.

(d)& (e) The realisation of proceeds by the GoI and LIC is a function of the bid received and is  therefore  not  known  at  the  moment.  While  deciding  the  terms  and  conditions  of  the strategic sale, legitimate concerns of the existing  employees and other stakeholders are suitably addressed through appropriate provisions made in the Share Purchase Agreement (SPA).

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