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Finance Minister Nirmala Sitharaman on Friday reaffirmed that the government will continue with the disinvestment process of IDBI Bank, clearing doubts after the previous bidding round failed to meet expectations.
The government called off the earlier attempt to privatise the bank last month after bids came in below the reserve price, creating uncertainty around the future of the transaction.
Under the initial proposal, the government planned to offload a 30.48 per cent stake in IDBI Bank, while Life Insurance Corporation of India was to divest 30.24 per cent. This would have taken the total stake sale to 60.72 per cent, with an estimated valuation of around Rs 72,000 crore based on earlier market prices.
The privatisation process has been underway since January 7, 2023, when the Department of Investment and Public Asset Management received multiple expressions of interest from potential bidders.
Sitharaman also clarified that there are currently no discussions on consolidating public sector banks, though a high-level banking committee will examine the issue going forward. She made the remarks while speaking on the sidelines of an event in Pune marking the inauguration of a new premises of the State Bank of India’s Local Head Office, Maharashtra Circle.
Highlighting broader economic trends, the Finance Minister emphasised that India’s growth continues to be driven by strong domestic consumption and agricultural activity, even amid global uncertainties. She noted that the size of the Indian economy necessitates large banks and that internal demand remains a key pillar supporting sustained growth.
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