India Reviews IDBI Bank Divestment Amid Weak Demand

The Indian government is reviewing its plan to sell a stake in IDBI Bank after weak investor interest and market volatility stalled the process. A core group of secretaries is now working through revised valuations and timelines for the deal. Finance Minister Nirmala Sitharaman has confirmed the strategic sale will go ahead, signaling the government has not abandoned the plan despite the delays. IDBI Bank has been on the divestment list for years. The government and Life Insurance Corporation, which holds a significant stake, have been trying to find a buyer willing to meet their valuation expectations. Soft demand from investors and choppy markets have made that harder. The secretaries' review suggests the government may adjust either the price expectations or the sale structure to attract serious bidders. A revised timeline is expected to follow the deliberations. Watchers should track whether the government lowers its valuation floor or changes the deal terms to move this transaction forward.