IDBI Bank Photo.
Credit: X/@IDBI_Bank
New Delhi: The potential investors in IDBI Bank have received necessary security clearance from the Home Ministry and a nod from the Reserve Bank is expected to come in soon, an official said on Thursday.
The government along with LIC is selling a nearly 61 per cent stake in IDBI Bank. This includes a 30.48 per cent stake of the Government of India and 30.24 per cent of LIC.
In January 2023, the Department of Investment and Public Asset Management (DIPAM) said it received multiple Expressions of Interest (EoI) for buying a stake in IDBI Bank.
The bidders who have shown interest through EoI have to get two sets of clearances -- one from the home ministry for security clearance and the other from the Reserve Bank of India (RBI) for meeting the 'fit and proper' criteria.
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.
After the required clearances, investors would get access to the data room and a due diligence process would be initiated, the official added.
Shares of IDBI Bank were trading at Rs 102.12, up 4.70 per cent over the previous close on the BSE.
The government and LIC together hold a 94.72 per cent stake in IDBI Bank, which will come down to 34 per cent after the strategic sale.
The government has budgeted to raise Rs 50,000 crore from disinvestment and asset monetisation in the current fiscal.