India is preparing to invite bids for the sale of its majority stake in IDBI Bank, valued at $7.1bn, reported Bloomberg, citing sources familiar with the matter.
This is a part of the government’s ongoing strategy to privatise the previously troubled lender and advance its divestment strategy.
According to the report, the discussions with potential buyers have currently reached an advanced stage.
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The government plans to sell 60.72% of the lender, equivalent to approximately $7.1bn, based on the bank’s current market valuation.
The bidding process is likely to begin as early as this month.
IDBI Bank, which previously had significant non-performing assets, has reported a return to profitability following capital infusions and asset recoveries.
The government and Life Insurance Corporation of India (LIC) together hold approximately 95% of the bank’s shares.
Through this divestment, the government will offload 30.48% and LIC 30.24%, along with the management control transfer.
Previously, the government could not meet the deadlines for closing the sale process due to delays in securing regulatory approvals.
The government officials noted that the sale is expected to be completed in the fiscal year, which will end in March 2026.
According to a statement from the Finance Minister, in response to parliamentary questions this week, bidders who are shortlisted are conducting due diligence at present.
Emirates NBD, Kotak Mahindra Bank and Fairfax Financial are among the bidders who expressed interest in acquiring the IDBI stake.
While the government aims to announce the winning bidder by the end of March 2026, the timeline may extend as regulatory approvals and other clearances are finalised, the report said.
Last month, Emirates NBD was reported to remain as an active contender in the process to acquire a stake in IDBI Bank, after the bank decided to quit the proposed acquisition to seek a majority stake in RBL Bank.
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