Why India's IDBI Bank privatization plan just hit a wall
Business
The government's plan to privatize IDBI Bank just got delayed: none of the bids met the minimum price they wanted.
The plan was first announced in the 2016 Budget, and the divestment process has been ongoing since 2016; the government and LIC have been trying to sell off most of their shares (60.7%), but with offers coming in too low, they've now scrapped all bids.
What happens next?
This setback could slow down India's push to reform public sector banks and meet fiscal goals.
After the news, IDBI's stock dropped nearly 19%, closing at ₹74.28, well below its 52-week high of ₹118.38.
Now, a government panel will review what went wrong and decide on next steps for one of India's biggest bank sales in years.