Reports of a possible deferment of the disinvestment of IDBI Bank are speculative and baseless, and the transaction continues to be on track, said the Department of Investment and Public Asset Management (DIPAM) on Friday.
"Reports appearing in a section of the media indicating the possibility of deferment of IDBI Bank disinvestment are misleading, speculative, and baseless," the DIPAM secretary said in a tweet.
According to the tweet, the transaction continues to be on track as per the defined process in the post-Expression of Interest stage following receipts of multiple interests.
Earlier on Friday, a media report, quoting sources, said the government may defer the IDBI Bank privatization plan over concerns of "market volatility".
In May 2021, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, gave its in-principle approval for strategic disinvestment along with the transfer of management control in IDBI Bank.
The government of India and LIC together own more than 94 per cent of equity of IDBI Bank (government 45.48 per cent, LIC 49.24 per cent, the government then said.
It was expected that the strategic buyer will infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank Ltd. and shall generate more business without any dependence on LIC and government assistance or funds. (ANI)