IDBI Bank latest: India completes 21 PSU stake sales in 26 years

India has now completed 21 strategic stake sales in public sector undertakings over the past 26 years, with the divestment of IDBI Bank representing the latest addition to this extended portfolio of transactions. The programme reflects the government's ongoing effort to rationalise its holdings across key sectors of the economy and unlock capital for reinvestment in infrastructure and social programmes.

The government's divestment agenda gained particular momentum in the early 2000s, when it executed several landmark sales including BALCO, VSNL and Hindustan Zinc. These transactions established a template for subsequent asset disposals and demonstrated investor appetite for privatised Indian enterprises.

Subsequent years witnessed further major disposals across the energy and aviation sectors. Transactions involving THDC India and NEEPCO, both power generation companies, were followed by the contentious privatisation of Air India, which marked one of the government's most complex divestment exercises. Each sale has brought distinct challenges in terms of valuation, worker rehabilitation and regulatory compliance.

The steady pace of stake sales reflects a shift in government policy toward reducing its direct operational role in commercial enterprises, though critics have raised concerns about asset valuations and the impact on employees. Supporters argue that the programme has improved efficiency in privatised entities and freed resources for the state to focus on core governance functions.