Parliament Question: Privatisation of IDBI

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT (DIPAM) LOK SABHA UNSTARRED QUESTION NO. 5887 TO BE ANSWERED ON MONDAY, MARCH 30, 2026 CHAITRA 09, 1948 (SAKA) PRIVATISATION OF IDBI 5887. Shri Anil Yeshwant Desai: Will the Minister of FINANCE be pleased to state: (a) Whether it is a fact that the Government has initiated process of privatisation of Industrial Development Bank of India (IDBI), if so, the details thereof.; (b) Whether it is a fact that IDBI has in possession of several highly valuable land assets across the country under the provisions of Land Acquisition Acts for the public purposes; (c) If so, the status of these lands once it is in control of private entity; (d) Whether there is the guarantee that the private management will continue to provide land facility to farmers, if so, the details thereof; (e) Whether any assurance about the maintaining of minimum 51% equity holding of Government has ever been given and if so, the details thereof. ANSWER THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) (a) IDBI Bank is classified as a private sector bank by RBI with effect from 21.01.2019. At present, Government of India’s (GoI) shareholding in IDBI Bank is 45.48% and LIC’s shareholding is 49.24%. Pursuant to the CCEA’s (Cabinet Committee on Economic Affairs) approval in May 2021 for strategic disinvestment along with transfer of management control in IDBI Bank Ltd, 60.72% of IDBI Bank’s equity is being offered for strategic disinvestment with transfer of management control, wherein GoI is offering 30.48% (post sale GOI’s residual equity to be 15%) and Life Insurance Corporation of India (LIC) is offering 30.24% equity for disinvestment (post sale LIC’s residual equity to be 19%). Contd…. Page 1 of 2(b) to (d) IDBI Bank has reported that as per the records available with the Bank, there are no properties which indicate that land assets (leasehold/freehold) are under the provisions of the Land Acquisitions Acts. (e) In the Budget Speech of 2016-17, Hon’ble Finance Minister (FM) announced that the Government of India (GoI) will consider reducing its stake in IDBI Bank Ltd. to below 50 percent. Subsequently, LIC acquired 51% controlling stake in IDBI Bank Ltd. in the year 2019, with the approval of IRDAI and RBI. Later, the Cabinet Committee on Economic Affairs (CCEA) on May 05, 2021 granted its in-principle approval for strategic disinvestment of GoI’s and LIC’s equity in IDBI Bank along with transfer of management control. ******* Page 2 of 2