 "IDBI Bank")
The IDBI Bank deal has renewed attention on the government’s privatisation efforts, even as several transactions have taken years to progress from announcement to completion
The Cabinet’s approval on Wednesday for the strategic sale of IDBI Bank to a subsidiary of Fairfax Financial Holdings takes the number of privatisation transactions in India to 21. It is also the largest strategic disinvestment since the sale of Air India in 2022.
From the first phase of Modern Food Industries’ sale in 1999-2000 to the proposed IDBI Bank transaction, the government’s record of transferring ownership and management control of public sector enterprises has been marked by landmark deals interspersed with long gaps. The sales of BALCO, VSNL and Hindustan Zinc in the early 2000s, followed by the transactions involving THDC India, NEEPCO and Air India, account for much of this history.
The IDBI Bank deal has renewed attention on the government’s privatisation efforts, even as several transactions have taken years to progress from announcement to completion.