Pune, April 24 (IANS) Finance Minister Nirmala Sitharaman on Friday confirmed that the government plans to continue with the disinvestment process of IDBI Bank.

The comments dispelled the uncertainty hanging over the privatisation of IDBI Bank, as the offers received in the earlier bidding round were below the reserve price fixed by the government. Consequently, the proposed transaction had to be called off last month.

Under the original plan, the government was to sell a 30.48 per cent stake in IDBI Bank, while LIC was to divest 30.24 per cent, taking the total stake on offer to 60.72 per cent. Based on earlier market prices, the combined value was estimated at Rs 72,000 crore.

The privatisation process has been underway since January 7, 2023, when the Department of Investment and Public Asset Management received multiple expressions of interest from bidders.

The Finance Minister further stated that there is nothing on the table at present on consolidation among public sector banks, adding that a high-level banking committee will examine the matter. Sitharaman spoke to reporters on the sidelines of the inauguration of the new premises of the State Bank of India’s Local Head Office, Maharashtra Circle, at Pune.

Sitharaman also highlighted that India’s economic growth must be rooted in domestic activity, especially agriculture, which can also supply external markets.

She said that the sheer size of the Indian economy and strong internal consumption create the need for large banks. This domestic demand itself is capable of sustaining growth, which continues to be among the fastest in the world.

“I reiterate, the domestic consumption and the domestic economic wheels moving well have really stood by us. Even during times when global markets are in a churn, our exports are taking a beating. But our exporters, to their credit, I must say, have done well despite all the tariff and other challenges which the global uncertainties are giving them. They are because of their ingenuity, finding newer markets and performing. Exports are doing all right because they are able to find newer markets and keep their growth sustained,” she added.

–IANS

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