IDBI Bank Shares Dip Over 3% as Government Resets Asset Valuation Process

22 Nov 2023 , 03:32 PM

IDBI Bank shares decline over 3% as the government cancels the bid invitation process for appointing an asset valuer for the bank’s divestment. The Centre will issue a fresh Request for Proposal (RFP) for the appointment of the asset valuer, following four extensions of the RFP.

The government, in collaboration with LIC, aims to divest its holdings in IDBI Bank, with a joint decision to sell a 60.7% stake in the bank. Multiple preliminary bids were received for the strategic sale in January, prompting the need for a thorough evaluation by the asset valuer.

The asset valuer’s role involves assessing the fair value of the bank’s investments, loans, advances, deposits, borrowings, and other liabilities. The valuation process aims to provide a comprehensive overview of IDBI Bank’s financial portfolio, promoting transparency and fairness in the divestment proceedings.

A senior government official indicates that the proposed stake sale in IDBI Bank may not be completed by March 2024, citing compliance with the RBI’s fit and proper criteria as an ongoing consideration.

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