Indian government's IDBI Bank stake sale may be delayed beyond fiscal year

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Indian government's IDBI Bank stake sale may be delayed beyond fiscal year
Credit: © Reuters.

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.

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  • Girish Kandhari @Girish Kandhari
    AI based knowledge is not reliable……
    Like 0

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