Business · Companies · 8 hrs ago
India to continue asset sales after meeting divestment targets
India’s government will keep selling or monetising assets even after meeting its divestment targets for the year.
The plans include reducing its stakes in public-sector banks where government ownership is above 75%.
The government currently owns more than 90% of Punjab & Sind Bank, Indian Overseas Bank and UCO Bank.
It also plans a second public infrastructure investment trust backed by a group of 10 national highways and is preparing three companies for IPOs.
The first highway trust raised Rs 9,500 crore by monetising highway assets, while this year’s proceeds from asset sales and related deals have reached Rs 62,124 crore.
A planned Rs 52,878-crore deal for Fairfax to buy IDBI Bank could push proceeds above the government’s Rs 80,000-crore target, but it still needs regulatory approvals and other steps.
The government expects the IDBI deal to close by the end of the fiscal year if those steps are completed.
India will continue selling and monetising public assets despite reaching its divestment targets for the year.
DIPAM secretary Arunish Chawla said the government plans to use offer-for-sale deals and reduce its stakes in public-sector banks for the rest of the fiscal year.
The government is preparing a second public infrastructure investment trust and three companies for initial public offerings.
It has raised Rs 62,124 crore so far this year through offer-for-sale deals, infrastructure investment trusts and stake sales.
The government expects to exceed its Rs 80,000-crore target after Fairfax completes its deal to buy IDBI Bank.
- Who
- The Indian government, represented by DIPAM secretary Arunish Chawla.
- What
- It will continue asset monetisation after meeting its divestment targets, including stake sales and reductions in its holdings in public-sector banks.
- When
- For the rest of the current fiscal year. The article was published on October 23, 2026.
- Where
- India.
- Why
- Chawla said the government aims to share wealth with the public and meet regulations on minimum public shareholding.
This story does not have two clearly opposing sides.
The Raajmarg Infra Investment Trust was listed after raising Rs 9,500 crore by monetising highway assets.
The government has raised Rs 62,124 crore through offer-for-sale deals, infrastructure investment trusts and stake sales.
Chawla said the government would continue asset monetisation for the rest of the fiscal year.
Chawla expects the IDBI Bank deal to close after Fairfax receives regulatory approvals and completes other steps.
- Asset sales raised so far
- Rs 62,124 crore
- Current fiscal divestment target
- Rs 80,000 crore
- Planned second public InvIT
- Based on a cluster of 10 national highways
- Planned IPO preparations
- Three companies
- Minimum public shareholding norm
- 75%
- Government stakes above 75%
- Punjab & Sind Bank, Indian Overseas Bank and UCO Bank
What people are saying
We have already identified a cluster of 10 national highways, which will provide the underlying capital asset.
We are also bringing down the equity (stake) in nationalised banks gradually to the minimum public shareholding norm of 75%, that is part of the mandate that we have to share the wealth with the people and also in line with regulations...we are moving ahead on that path.
We have a market research department, which we call Kurukshetra.
The IDBI restructuring is a reform in continuum...It is being restructured as a going concern.