RBI begins evaluating potential bidders for state-owned IDBI Bank

Mumbai, April 13

The Reserve Bank of India (RBI) has begun evaluating at least five potential bidders interested in picking up a majority stake in state-owned IDBI Bank Ltd., three people familiar with the matter said.

Kotak Mahindra Bank, Prem Watsa-backed CSB Bank and Emirates NBD are among those that have submitted expressions of interest, two of the people said, speaking on condition of anonymity because the talks are confidential.

The names of the other potential bidders could not be confirmed.

The RBI, Finance Ministry, IDBI, Kotak Mahindra Bank and CSB Bank did not respond to requests for comment. A spokesperson for Emirates Bank declined to comment.

The stake sale in the lender is the first major divestment across state-owned banks as part of a broader privatisation plan and could fetch the government 300 billion Indian rupees $3.66 billion at the current market valuation.

The government owns 45.48% of IDBI Bank, and is looking to divest a 30.48% stake in the lender, alongside state-owned Life Insurance Corporation of India, which will sell 30.24% from its 49.24% holding in the bank. — Reuters