By Sapna Das July 31, 2024, 3:01:31 PM IST (Updated)
2 Min ReadIn what comes as a significant step towards the privatisation of IDBI Bank Ltd., the proposal has received the 'fit and proper' nod from the Reserve Bank of India (RBI), sources with knowledge of the matter told CNBC-TV18.
Sources further said that the bidders for the strategic sale in IDBI Bank will begin due diligence in early-August.
The bidders for IDBI Bank will access virtual data room and the draft share purchase agreement, sources said, adding that the government is likely to call for financial bids on IDBI Bank before the end of the current financial year.
The government and Life Insurance Corporation of India are selling close to 61% stake in IDBI Bank, in which 30.48% stake is held by the government and 30.24% stake is held by LIC.
The Divestment Department had already forwarded the names of prospective bidders for IDBI Bank to the central bank for evaluation.
"The RBI is in an advanced stage of giving clearance on fit and proper criteria," he said. "We are almost there and will move to the due diligence stage soon. I hope this can be completed within this financial year," DIPAM Secretary Tuhin Kanta Pandey had told CNBC-TV18 on July 23, the day of the Union Budget, when he was asked about the progress made on the potential disinvestment.
IDBI Bank's disinvestment has faced multiple hurdles ever since the first Preliminary Information Memorandum (PIM) to invite Expression of Interest was published on October 7, 2022. The DIPAM had made another attempt in November last year to appoint an asset valuer as the first attempt was cancelled due to poor response.
Shares of IDBI Bank saw a spike but are currently off the highs of the day, trading 0.4% lower at ₹103.79. The stock has risen 53% so far in 2024.