MUMBAI: The Centre will continue to push ahead with its asset monetisation target through OFS (offer for sale) deals and reduction in stakes in public-sector banks for the rest of the fiscal despite achieving its divestment targets this year, Department of Investment and Public Asset Management (DIPAM) secretary Arunish Chawla told ET in an interview.

The government plans to launch a second public Infrastructure Investment Trust (Invit), ready three companies for IPOs, and reduce stakes in PSU banks closer to 75%, Chawla said.

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"We have already identified a cluster of 10 national highways, which will provide the underlying capital asset. So, the second public Invit is in the works and hopefully before the close of this financial year, it will also come to fruition,” Chawla said. “We are also bringing down the equity (stake) in nationalized 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."

The government raised Rs 9,500 crore by monetising some highway assets through the Raajmarg Infra Investment Trust (RIIT), which was listed in March 2026.

Chawla said public sector banks with government stakes above 75% are automatic targets for the Centre to reduce ownership. Currently, the government has more than 90% stake in Punjab & Sind Bank, Indian Overseas Bank and UCO Bank.

"We have a market research department, which we call Kurukshetra. We analyze each asset on its merits and take a decision as per the market conditions and as per our internal research to figure out and decide which asset to monetize and when. We have about 70 listed companies in the basket on which we can take a call,” he said.

So far this year, the government has raised Rs 62,124 crore through OFS, Invits and stake sales. It is expected to surpass its targeted Rs 80,000 crore for the current fiscal after the completion of Fairfax Financial Holdings’ Rs 52,878-crore deal to buy IDBI Bank.

Chawla said he expects to close the IDBI deal by the end of the fiscal after Fairfax gets approvals from the Reserve Bank of India (RBI), concludes the share purchase agreements and finalizes an open offer as per takeover guidelines.

"The IDBI restructuring is a reform in continuum...It is being restructured as a going concern. Even today, it is a board-managed company and in future also, it will remain a board-managed company. With confidence, we expect that IDBI will enhance its performance, it will improve value and will become one of the major banks in the country and will also acquire a global footprint," Chawla said.

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He said the existing employees of IDBI are fully protected as their service conditions cannot be amended to their disadvantage by Fairfax while there is a dedicated fund for pensioners.

Chawla said DIPAM had to draw up a share purchase agreement for a bank for the very first time, had to use an alternate valuation methodology to get fair value, and negotiate market volatility due to the low float in IDBI Bank.

"Team DIPAM has worked very hard and that will pay off and we will provide full support to the budget," Chawla said.