Government scraps bid process for IDBI Bank sale valuer

The government has decided to nullify the ongoing bidding process for the selection of an asset valuer for sale of its shares in IDBI Bank, as stated in an announcement by the Department of Investment and Public Asset Management.

A fresh round of bidding will be initiated to appoint a valuer for the government's stake in IDBI Bank, and this decision comes without a specified rationale, according to the statement released on Tuesday.

The government, along with Life Insurance Corp (LIC) of India, is seeking to divest its ownership interest in IDBI Bank, with the government currently holding a 30.48 per cent stake and LIC holding a 30.24 per cent share. Combined, the government and LIC presently own approximately 95 percent of the bank.

The initial invitation for bids to appoint a valuer was issued on September 1. However, the government recently relaxed the criteria for selecting such intermediaries after the initial conditions were deemed too stringent.

Tuhin Kanta Pandey, the secretary of the Department of Investment and Public Asset Management, informed reporters last week that the government does not anticipate concluding the sale of IDBI Bank by the end of the current financial year, which concludes on March 31, 2024.