The Indian government's stake sale in IDBI Bank (NS: IDBI ), initially slated for completion within this fiscal year, may not meet its target timeline. The government and LIC (NS: LIFI ) together hold a 61% stake in the bank, with the disinvestment target set at Rs 51,000 crore (Rs 1 crore = $120,256). However, only Rs 6,949 crore has been raised so far.
The delay in the stake sale comes amidst an economic environment where dividends from central public sector enterprises have hit Rs 16,257 crore. Non-tax revenues are nearing the budget estimate of Rs 3,01,650 crore, currently standing at Rs 200,000 crore.
In addition to these figures, the Department of Investment and Public Asset Management (DIPAM) reported receipts totaling Rs 23,207 crore till September of this fiscal year. This financial situation has prompted commentary from ICRA (NS: ICRA ) Ltd.'s chief economist.
Furthermore, the Reserve Bank of India (RBI) has a dividend surplus of Rs 87,000 crore. This is coupled with potential overshooting in expenses related to schemes like the Mahatma Gandhi National Rural Employment Guarantee scheme. These factors could impact the overall financial landscape and potentially influence the timeline for the IDBI Bank stake sale.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
AI based knowledge is not reliable……Like 0