IDBI Bank 's strategic disinvestment process is facing delays, with the timeline now expected to extend to the next fiscal year, according to a Financial Express report. The delay stems from ongoing procedural and evaluation processes that are still underway as part of the comprehensive disinvestment framework.

Disinvestment Timeline Extension

The strategic disinvestment of IDBI Bank, which represents a key component of the government's privatization initiatives for public sector banks, requires completion of various procedural steps before finalization. These processes involve detailed evaluation mechanisms and regulatory approvals that are essential for ensuring a smooth transition of ownership.

Procedural Requirements

The ongoing evaluation processes encompass multiple aspects of the disinvestment framework, including:

• Comprehensive due diligence procedures
• Regulatory compliance assessments
• Valuation and pricing mechanisms
• Legal and documentation requirements

The complexity of these procedural requirements has contributed to the extended timeline for completing the strategic disinvestment process.

Impact on Disinvestment Schedule

The delay in IDBI Bank's strategic disinvestment reflects the comprehensive nature of such transactions, which require thorough evaluation and adherence to established procedural frameworks. The extension to the next fiscal year provides additional time for completing all necessary processes while ensuring compliance with regulatory requirements and evaluation standards.

IDBI Bank has responded to BSE's clarification request regarding the significant surge in trading volumes of the bank's securities across exchanges. The bank confirmed compliance with regulatory disclosure requirements while reaffirming that the strategic disinvestment process remains under the Department of Investment and Public Asset Management (DIPAM).

BSE Clarification Response

In its official response dated January 5, 2026, IDBI Bank addressed BSE's inquiry about the recent volume spurt in the bank's shares. The bank stated that it has promptly informed stock exchanges of all material events and price-sensitive information as required under SEBI LODR Regulations.

The bank emphasized that there is no undisclosed or price-sensitive information requiring immediate disclosure to exchanges at this time. Company Secretary Jyothi Biju Nair signed the official communication, assuring continued compliance with all regulatory requirements.

Strong Q3 Business Performance

Despite recent market volatility, IDBI Bank's Q3 business update revealed impressive operational growth across multiple parameters. The bank achieved a significant milestone with total business reaching ₹5.50 lakh crore, representing a substantial 12.00% increase year-over-year.

The lending portfolio showed particularly strong momentum, with net advances surging by 15.00% to ₹2.30 lakh crore. Total deposits demonstrated steady growth of 9.00%, reaching ₹3.07 lakh crore, while CASA deposits grew by 4.00% to ₹1.40 lakh crore.

Ongoing Disinvestment Developments

The bank's response comes amid active developments in the disinvestment process. The Centre is expected to invite financial bids for the stake sale, with the government and Life Insurance Corporation jointly selling a 60.70% stake in the lender. The successful bidder announcement is anticipated by March-end.

Sources have indicated that Kotak Mahindra Bank remains a frontrunner for acquiring the government's stake, potentially through a part-cash and part-equity merger structure to manage the significant market capitalization involved.