India to push forward IDBI Bank stake sale after key clearance

IDBI Bank

26/07/2024 11:10

By Nikunj Ohri and Manoj Kumar
       NEW DELHI, July 26 (Reuters) - India will press ahead
with the delayed sale of a majority stake in IDBI Bank  IDBI.NS 
after central bank clearance, opening bids for the lender before
the end of the financial year, a top finance ministry official
said on Friday.
    The Reserve Bank of India has indicated completion of its
fit and proper vetting of potential bidders of IDBI Bank, said
Tuhin Kanta Pandey, the country's secretary responsible for the
stake sale.
    Shares in IDBI Bank rose about 5% on the news.
    The "fit and proper" clearance by the central bank was the
key road block that had delayed the stake sale.
    The government, which owns 45.48% in IDBI Bank, and
state-owned Life Insurance Corp of India  LIFI.NS  which holds
49.24%, together plan to sell 60.7% of the lender. The sale
process was first announced in 2022.
    In the next phase the Indian government will allow potential
bidders to access IDBI Bank's private data in August, Pandey
said.
    Reuters have reported interested buyers include Emirates NBD
and Canadian billionaire Prem Watsa. 

 (Reporting by Nikunj Ohri and Manoj Kumar;Editing by Elaine
Hardcastle)
 ((Aftab.Ahmed@thomsonreuters.com; +91 99109 33884;))