IDBI Bank Stake Sale Unlikely To Conclude by March 2024: Govt Official

The government official mentioned on Thursday that the stake sale in IDBI Bank might not be finalised by March 2024. Tuhin Kanta Pandey, the Secretary of the Department of Investment and Public Asset Monetisation (DIPAM), stated that while the transaction is progressing, aspects such as compliance with the RBI's fit and proper criteria need attention. 

Pandey indicated that concluding the IDBI Bank stake sale before March seems impractical. The government, holding over 45 per cent of IDBI Bank's stake, and LIC, with a 49.24 per cent share, jointly plan to sell 60.7 per cent of the bank. Pandey noted that meeting the disinvestment target of raising Rs 51,000 crore this fiscal is dependent on crucial transactions like the IDBI Bank stake sale.

He acknowledged some uncertainty around the NMDC share sale, expected to generate over Rs 10,000 crore. Regarding the Shipping Corporation of India stake sale, Pandey mentioned a recent Maharashtra government order exempting stamp duty on an asset transfer transaction related to the sale. Emphasising that the divestment policy shouldn't be solely assessed through fiscal receipts, Pandey suggested considering disinvestment and dividends as targets. He expressed hope for the public to recognise LIC's potential as its stock price has consistently been below the listing's value.