Nirmala Sitharaman Confirms IDBI Bank Privatisation to Continue Despite Failed Bids
Nirmala Sitharaman Confirms IDBI Bank Privatisation to Continue Despite Failed Bids
Finance Minister Nirmala Sitharaman confirmed on April 24th, 2026, that the government will move ahead with the disinvestment of IDBI Bank. Her statement removes the uncertainty around the bank’s privatisation. Earlier, the government had to cancel the deal because the bids received were lower than the reserve price set for the sale.
Details of the Original Plan
Under the initial proposal:
- The government planned to sell a 30.48% stake in IDBI Bank.
- LIC was expected to sell 30.24%
- Together, a total of 60.72% stake was to be offered.
Based on past market prices, the total price of this stake was estimated at Rs 72,000 crore.
Status of the Disinvestment Process
The disinvestment process started on January 7, 2023. On that day, the Department of Investment and Public Asset Management received several expressions of interest from potential buyers.
No Immediate Plan for Bank Consolidation
The Finance Minister also said that there is no current proposal to merge public sector banks. However, a high-level banking committee will review the matter.
She shared this information while speaking to reporters during the inauguration of the new premises of the State Bank of India‘s Local Head Office, Maharashtra Circle, in Pune.
Focus on Domestic Growth
Sitharaman stressed that India’s economic growth should be driven by domestic activity. She pointed out that agriculture plays a key role, as it supports both local demand and exports. She explained that India’s large economy and strong internal consumption require big banks. Domestic demand is strong enough to support growth, which remains among the fastest in the world.
Role of Domestic Demand and Exports
She said that domestic consumption has been a major support for the economy, especially during times when global markets face uncertainty. Even when exports are affected by global challenges such as tariffs, Indian exporters have performed well. They keep exploring new markets and sustain stable growth despite challenges.