Modi government approves IDBI Bank sale for ₹52,878 crore
The Modi government has formally approved the sale of a 60.72% controlling stake in IDBI Bank for ₹52,878 crore. The transaction marks a significant moment in India's economic policy, aimed at recovering public money invested in the bank while reducing fiscal burden.
IDBI Bank, originally established in 1964 and converted into a full-service commercial bank in 2004, faced substantial challenges during earlier administrations. By March 2014, the bank carried ₹9,960 crore in gross bad loans, representing 4.90% of its total loan portfolio. The bank had extended significant credit to high-profile defaulters, including approximately ₹900 crore to Kingfisher Airlines.
The government's sale follows a period of restructuring and financial recovery. Between 2014 and 2026, the bank transitioned from a troubled state to improved financial standing. Through this strategic sale, the government aims to monetise its investment while maintaining a stake in the institution. The move is intended to eliminate ongoing fiscal drag and insulate public finances from systemic banking liabilities.
