NEW DELHI/MUMBAI: Government has begun the exercise to decide on the process for sale of its stake in IDBI Bank and is looking to speed up the process months after rejecting bids that were below the reserve price.Two high-powered meetings of officials took place on Monday, govt officials said, with focus on two qualified bidders-Prem Vatsa’s Fairfax and Emirates NDB. Officials indicated that the details are being worked out and more details will be available in the coming weeks. Kotak Bank, which was seen as the sole domestic candidate, said in Feb that it neither participated in the bidding process nor submitted any financial offer.The Centre and LIC, which together hold a 94.7% stake in the bank, are looking to sell 60.7%, with an Expression of Interest (EoI) sought in Oct 2022.Amid reports that Fairfax submitted a fresh bid, the bank’s share jumped 5% before closing nearly 3% higher at Rs 86.5 on BSE.
Fairfax, Emirates NDB Qualified Bidders For Centre, LIC Stake
It hit a 52-week high of Rs 116.9 on March 2 before falling to a low of Rs 67.7 after a panel of secretaries rejected the bids. In recent months, Dipam has stepped up disinvestment, but the exercise has so far focused on sale of small stakes in state-run banks and companies through the stock market route.While it is still early days, a successful sale of IDBI Bank shares would add to a series of stake purchases by foreign institutions in India’s financial sector. In May 2025, Sumitomo Mitsui Banking Corporation agreed to buy a 20% stake in Yes Bank for about $1.6 billion, or Rs 13,483 crore, from SBI and a consortium of banks, marking one of the largest cross-border deals.After RBI approval in Aug 2025 for up to 24.99% as a non-promoter, SMBC increased its holding to 24.2% by Sept 2025 through additional open market purchases, becoming Yes Bank’s largest shareholder while SBI’s stake fell to just over 10%.In June 2026, Emirates NBD completed the acquisition of a 60% majority stake in RBL Bank through around $2.8 billion, comprising a primary capital infusion and an open offer, marking the largest FDI in Indian banking and the first majority foreign takeover of a profitable private sector bank. In Dec 2025, Mitsubishi UFJ Financial Group announced a $4.4 billion deal to buy a 20% stake in Shriram Finance, which was the largest cross-border investment in India’s financial sector at the time.
