IDBI Bank's 60.72% stake has been cleared for sale after the Union Cabinet's approval.
The RBI fit‑and‑proper assessment was completed in early 2026, with the chosen buyer cleared to submit credentials. Arunish Chawla said the buyer will now present a glide‑path roadmap to the regulator.
The share purchase agreement (SPA) is expected to be signed between February and March 2027. Immediately after, an open offer will be launched for the 5.3% minority stake, allowing retail investors to participate.
LIC currently holds 19% of IDBI; regulators have directed a reduction to 15% within two years of the deal's closing, freeing up an additional 4% of shares for the public market and potentially boosting liquidity.
Private banks in India enjoy a net interest margin 64 basis points higher than public sector peers, according to recent data; a strategic sale could translate into higher efficiency and better technology adoption for IDBI.
The government anticipates receiving the full ₹52,838 crore by FY2026's end, contingent on the SPA signing and regulatory clearances. Investors will keep a close eye on the next filing, as the final valuation and terms may influence future trading.