Govt to soon reach out to potential buyers of IDBI Bank

The government will soon reach out to interested buyers of IDBI Bank and inform them about the broad contours of the strategic disinvestment, which is going to lay the groundwork for privatisation of public sector banks.

- NIKUNJ OHRI

The Centre, through its advisors, will share the strategic sale plan with investors, and how the deal is expected to be structured, an official said.

The exercise would be undertaken before the government comes out with the preliminary information memorandum (PIM) and invites expression of interest (Eol) for the IDBI Bank sale, said an official. The investors' interest would be gauged, and suitable structuring of the transaction would be done, he added.

The government would also inform investors about the banking licence that would come along with the purchase of the lender, and a clutch of investors – including private equity funds other than banks - can also acquire the bank.

However, this would be subject to meeting the Reserve Bank of India's (RBI) 'fit and proper criteria'. In the case of bidding through consortium, all entities will have to meet the RBI mandated criteria, the official said.