The government is holding roadshows to assess investor interest for the stake sale of IDBI Bank before inviting expression of interest (EoI), minister of state for finance Bhagwat Karad said on Monday.

In May 2021, the Cabinet Committee on Economic Affairs approved the strategic disinvestment and transfer of management control in IDBI Bank. 

The government and LIC together own more than 94% of IDBI Bank. While Life Insurance Corporation (LIC) has management control with a 49.24% stake, the government holds 45.48% in the bank. 

In a written reply to the Lok Sabha, Karad said it is expected that the strategic buyer will infuse funds, bring new technology and best management practices in IDBI Bank and shall generate more business without dependence on LIC and government for capital.

While deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement, the minister added.

The IDBI Bank disinvestment was initially planned for the current financial year but is now expected to take place in FY23.