IDBI Bank Privatisation: Govt Clarifies Reserve Price Unchanged, Discovered Bid Value Rises Rs 3,917 Crore

The ministry stated that the first round of bidding took place in 2025-26 in accordance with DIPAM's indicative guidelines. (File Photo)

The government has defended the bidding process for IDBI Bank's proposed privatisation, clarifying that the reserve price remained unchanged during the second round of bidding. It also said the revised procedure resulted in a Rs 3,917 crore increase in the discovered bid price. In a statement, the Finance Ministry rejected suggestions that the reserve price was either lowered or raised to facilitate the transaction. It maintained that the initial bidding exercise had ceased to remain operational after the first set of offers failed to secure approval.

“The reserve price was neither decreased nor increased, and the first round itself became functus officio after the initial bids were not approved,” the ministry said.

The clarification comes amid questions about the government's proposed strategic restructuring of IDBI Bank, particularly the valuation process and the transaction terms.

The Finance Ministry explained that the initial bidding exercise took place in 2025-26, following the Department of Investment and Public Asset Management's (DIPAM) indicative guidelines. These guidelines allow flexibility in handling complex strategic transactions.

According to the ministry, the bidding exercise did not involve a…

Original source: https://www.timesnownews.com/business-economy