Now Reading: Govt defends IDBI Bank sale process, says reserve price untouched
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Govt defends IDBI Bank sale process, says reserve price untouched
The Story in Brief
The Finance Ministry on Thursday (29 October 2026) defended the strategic disinvestment of IDBI Bank, clarifying that the reserve price was neither reduced nor increased after initial bids failed to meet the threshold. The clarification came after a Business World report alleged deviations from disinvestment rules and that officials saw bids before setting the sale price.
The ministry said the indicative guidelines governing strategic disinvestment are not rigid rules but allow flexibility. The Core Group of Secretaries on Disinvestment (CGD), empowered by the Cabinet Committee on Economic Affairs in August 2017, decided the procedure for a second round of bidding after the first round became functus officio. The winning bid of Rs 81 per share from a Fairfax-controlled entity was above the revised benchmark price and the fair value estimates of both independent valuation agencies, the ministry said. The government and LIC are selling a combined 60.72% stake in the bank for Rs 52,878 crore. DIPAM Secretary Arunish Chawla said the deal is expected to close by the end of FY27 after RBI clearance.
Indian Opinion Analysis
The coverage is uniform wire-style reporting, with all five outlets reproducing the Finance Ministry's late-night statement almost verbatim. Each source leads with the same defensive headline, that the reserve price was unchanged and the second bidding round was lawful, and each gives the ministry's explanation in full, including the 2017 CCEA delegation of powers to the Core Group of Secretaries on Disinvestment. No outlet interviews critics, cites the Business World report that prompted the clarification beyond one line, or adds independent scrutiny of the valuation methodology. The uniform framing leaves the government's account as the only account in the record. The concrete open point is the closure of the IDBI Bank sale, which DIPAM Secretary Arunish Chawla said would happen by the end of FY27 after RBI clearance.
Coverage: 5 sources, 5 neutral
Sources (5): cnbctv18.com (neutral report), livemint.com (neutral report), ndtvprofit.com (neutral report), newindianexpress.com (neutral report), businesstoday.in (neutral report)
This brief was synthesised by AI from the 5 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Update, 30 October 2026: this story now draws on 5 sources.
Update, 30 October 2026: further reports on this story from thehindubusinessline.com, economictimes.indiatimes.com.
