MUMBAI, Nov 16 (Reuters) – The Indian authorities doesn’t anticipate to conclude the sale of IDBI Financial institution (IDBI.NS) by the tip of the monetary yr on March 31, 2024, a prime finance ministry official instructed reporters.
The federal authorities, which owns 45.48% of IDBI Financial institution, and state-owned Life Insurance coverage Corp of India (LIFI.NS), which holds 49.24%, collectively plan to promote 60.7% of the lender.
Kotak Mahindra Financial institution (KTKM.NS), Canadian billionaire Prem Watsa-backed CSB Financial institution (CSBB.NS) and Emirates NBD (ENBD.DU) have submitted preliminary bids for a majority stake in IDBI Financial institution and the Reserve Financial institution of India (RBI) has been vetting bidders since April.
“We virtually do not suppose that earlier than March we will conclude (the sale of IDBI Financial institution),” mentioned Tuhin Kanta Pandey, the secretary of the Division of Funding and Public Asset Administration.
Pandey added that the RBI was nonetheless conducting the vetting course of. The federal government had beforehand anticipated that course of to be accomplished by the tip of October, elevating market hopes that the sale might shut by the tip of March.
The sale of a majority stake in IDBI Financial institution has been seen as a primary step in direction of privatising different state-run banks, and delaying the deal means the federal government will possible miss its divestment goal of 510 billion rupees by a much bigger margin.
Because the starting of the present fiscal yr in April, India has raised solely 80 billion rupees by promoting stakes in state-run corporations.
Such gross sales are a key income elevating measure which have helped Prime Minister Narendra Modi’s authorities spend document sums on constructing infrastructure. However just lately, the method has slowed as the federal government’s focus has shifted in direction of nationwide elections due subsequent summer time.
Reporting by Jayshree P Upadhyay
Enhancing by Mark Potter
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