Government Reopens Case to Restructure IDBI Bank


The Ministry of Finance is revisiting plans for the restructuring of IDBI Bank. It is considering selling government stake to private entities in an effort to reduce the burden on the government while hoping to use the funds for other social security schemes.

78% of IDBI Bank is owned by the government, and the Ministry of Finance is reluctant on lowering the government’s holding in the bank as officials are concerned that audit and investigative agencies might hound them in the future.

Finance Ministry Considering the Restructuring of IDBI Bank

Due to the upcoming general elections in 2019, the government has not specified a time frame, but has begun considering a number of options regarding IDBI Bank. According to sources, the government intends to proceed with the plan to restructure the bank. However, the fraud at Punjab National Bank was a massive setback that led to the government diverting its energy to resolve the immediate issue.

IDBI Bank’s new management, headed by CEO and Managing Director MK Jain, has begun disposing non-core assets to raise funds. Real estate is among these non-core assets.

Sources have revealed that the Centre does not have the resources required to keep funding public sector lenders due to the fact that the same funds can be utilised elsewhere as health and education, among other sectors, are in dire need of investment.


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