The Reserve Bank of India (RBI) has agreed with the government to arrange the sale of IDBI’s stake. All issues related to the structure of the deal have been properly resolved with the RBI.

Media reports said there were discussions around the promoter’s roadmap – the RBI has a 15-year timetable to reduce the stake to a certain level, merger options and membership in a syndicate of bidders. There have also been calls to allow private equity funds to buy stakes in the bank.

The government has been consulting with the RBI on these long-standing issues.

The media also reported that officials hoped that if the deal could not be completed this fiscal year, a financial bid could begin at least this fiscal year, although the official timetable is still March.

Even so, it would be a huge advantage for the government’s strategic stake sale as it would be the first bank in the block, they said.

Negotiations with the Reserve Bank of India will continue as the government and central bank will have to proceed with the formulation of the letter of intent and the financial tender phase, media reports said.