IDBI Bank Disinvestment On Track; Asset Monetisation To Beat Rs 80,000-Crore Target: Govt Sources

The Union government remains confident that the strategic disinvestment of IDBI Bank will move ahead and expects to surpass its Rs 80,000-crore asset monetisation target for FY27, despite recent hurdles in the stake sale process, according to official sources.

The Department of Investment and Public Asset Management has set a target of Rs 80,000 crore under Miscellaneous Capital Receipts for the current financial year. The estimate includes proceeds from strategic disinvestments as well as asset monetisation initiatives, with the proposed sale of IDBI Bank continuing to be a key component of the programme, the sources added.

The disinvestment process, however, has encountered valuation-related challenges. 

In March 2026, financial bids submitted by Fairfax Financial Holdings and Emirates NBD were reportedly rejected after they fell short of the government’s undisclosed reserve price. While reports had suggested that the proposed sale could be shelved, government officials have maintained that the process remains active.

Authorities are examining legal and procedural options to revive the transaction and take it forward. One of the key challenges has been IDBI Bank’s limited public float of about 5.29%, which has complicated price discovery and prompted policymakers to reassess the structure of the sale process.

Alongside strategic stake sales, the Centre is strengthening its broader asset monetisation strategy. 

Officials are increasingly relying on dividend payouts from public sector enterprises and exploring the monetisation of government-owned land assets through instruments, such as Real Estate Investment Trusts (REITs).

With multiple monetisation avenues in place, the government remains optimistic about meeting-and potentially exceeding-its FY27 capital receipts target, even as the IDBI Bank disinvestment process undergoes further evaluation.

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