Sources said that the process of selling IDBI Bank has finally reached the next stage. If sources are to be believed, consulting firm KPMG has completed due diligence (complete investigation of the company). This report will be presented before the bank board, after which the name of the potential buyer can be revealed based on the bids.

Big news on stake sale in IDBI Bank- A source aware of the development said that "final due diligence started about a week ago. It may take about a month to complete," the source said.

After its completion, the Department of Investment and Public Asset Management (DIPAM) will ask interested investors to submit bids to acquire 60.7 per cent stake in IDBI Bank. Bids are unlikely to be invited before March, so the disinvestment of IDBI Bank may possibly be delayed till FY26. Sources said that since the process has reached the final due diligence stage, the disinvestment program cannot be delayed further. Often seen as a crucial step before a deal closes, especially when there is a lot of delay in the process. Closing due diligence is done to ensure that important assumptions made in the transaction documents remain relevant. Doing closing due diligence is also seen as a good corporate governance practice. In the case of IDBI Bank, KPMG conducted a closing due diligence in December A vendor due diligence was carried out in 2020, the findings of which formed the basis for interested investors to submit their expressions of interest (EOIs), which opened in October 2022. In January 2023, government officials said they were happy with the EOIs received for IDBI Bank. Around September last year, the Reserve Bank of India approved some interested investors as "fit and proper" to make financial bids for the bank.

Who has how much stake in IDBI Bank

Life Insurance Corporation of India (LIC): 49.24%

Government of India: 45.48%

Other public and institutional investors: Remaining stake