IDBI Bank privatization stalled amid weak bids.

IDBI Bank privatization stalled amid weak bids. India's government has postponed the sell-off of its 61% stake in IDBI Bank, citing low investor interest. This decision risks undermining the Centre's commitment to structural reforms. The rationale for privatization extends beyond revenue generation—it reflects a core free-market principle that governments should exit businesses the private sector can operate effectively. With 12 public sector banks already controlling over 53% of loans and 60% of deposits, divesting IDBI Bank would not threaten PSB dominance in Indian banking. The privatization process has been underway since 2021 when the cabinet approved it in principle. Weak bids alone should not derail this reform agenda, especially for a government that has demonstrated willingness to pursue controversial labor reforms and other structural changes.