The government’s stake sale in IDBI Bank Ltd. is not expected to conclude this financial year, said DIPAM Secretary Tuhin Kanta Pandey.
“We practically don’t expect the sale of IDBI Bank to conclude before March,” Pandey told BQ Prime on the sidelines of a conference conducted by FICCI on Thursday.
According to him, the transaction is on course. However, the Reserve Bank of India is still conducting the vetting process, and there are other criteria that need to be complied with, he said.
The Indian government and the Life Insurance Corp. of India together own about 61% of the equity stake in IDBI Bank. Last year, the central government announced a sale process for the lender, and the Department of Investment and Public Asset Management was involved in closing the sale.
The government has a divestment target of Rs 51,000 crore for FY24, and with an already slow start for the proceeds this year, the delay in the sale could lead to it falling short of its target.
Government Raises Rs 28,000 Crore Via Divestment, CPSE DividendDIPAM has received Rs 28,000 crore in the form of divestment and dividend receipts from the central public sector enterprises till date in this fiscal.
For fiscal 2024, the department has an overall target of Rs 94,000 crore, of which, till date, it has achieved nearly 30%, or Rs 28,000 crore.
“…together, we have done about Rs 28,000 crore till date, and we have a combined target of disinvestment and CPSEs dividend of Rs 94,000 crore. We will definitely try and work hard to move near that,” Pandey said.
