The government is confident of pulling off the IDBI Bank stake sale in FY26 itself. Department of Financial Services Secretary M Nagaraju made this announcement on Tuesday. He spoke at the annual GFF event in Mumbai.
Nagaraju also confirmed there is no proposal to start charging for UPI transactions. This reassurance comes amid public concerns over potential fees. The government remains committed to keeping digital payments free.
The IDBI Bank sale is progressing as planned. Officials expect it to be completed before the end of the current fiscal year. This strategic move aims to reshape public sector banking.
Currently, the government owns over 45 percent stake in IDBI Bank. The state-run Life Insurance Corporation holds over 49 percent. Together, they control the majority shareholding.
The government plans to sell a 60 percent stake in the city-headquartered lender. This significant divestment will reduce government ownership. It marks a major step in banking sector reforms.
Apart from IDBI Bank, the government is on track with other divestments. It plans offers for sale in several state-run banks. These OFS issuances will offload up to 20 percent stakes.
The stake sale will help comply with SEBI’s public shareholding rules. Listed companies must maintain a minimum public shareholding of 25 percent. This move ensures regulatory compliance.
OFS will be carried out in Bank of Maharashtra and Indian Overseas Bank. UCO Bank, Central Bank of India, and Punjab and Sind Bank are also included. The goal is to bring government stakes below 75 percent.
Meanwhile, Axis Bank’s MD and CEO Amitabh Chaudhry spoke at the same event. He expressed keen interest in lending for acquisition finance. This follows recent regulatory changes.
Chaudhry noted that foreign lenders dominate the acquisition finance market. Private credit remains a relatively new field in India. Axis Bank aims to expand its presence here.
The bank is already active in bond and loan syndication. This experience will support its entry into acquisition financing. Chaudhry sees significant growth potential.
The Reserve Bank recently allowed domestic banks to conduct acquisition financing. This decision answers a long-standing request from lenders. It opens new business opportunities.
On the ‘forms of business’ move by RBI, Chaudhry said Axis Bank will await the final circular. The bank will decide its strategy after reviewing the details. This cautious approach ensures compliance.
The government’s divestment plan signals a shift in banking ownership. It aligns with broader economic reforms. These changes could reshape India’s financial landscape.
Keeping UPI transactions free supports digital payment adoption. It encourages financial inclusion across all segments. This policy benefits millions of users daily.